In the context of life insurance riders, what does a waiver of premium rider do?

The waiver of premium rider serves a specific purpose in life insurance policies by providing financial relief to the insured. When a policyholder becomes disabled, this rider allows them to stop making premium payments without losing their coverage. This means that in the event of a covered disability, the insurance company will waive the premiums that would otherwise be due during the period of disability. This is particularly important as it ensures that the policy remains in force even when the insured may be facing financial difficulties due to their inability to work.

The other options describe different functions or benefits that are not related to the waiver of premium rider. For example, increasing the coverage amount automatically pertains more to riders that enhance the face value of the policy, while family coverage options typically refer to adding dependents under a policy for additional costs. Finally, transferring a policy to a new owner is related to ownership changes rather than changing payment obligations due to disability.