What does "waiver of premium" mean in life insurance?

The term "waiver of premium" in life insurance refers specifically to the provision that allows policyholders to skip premium payments without losing their coverage if they become disabled. This means that if the insured is unable to work due to a qualifying disability, the insurer will waive the requirement for premium payments for a certain period or until recovery, ensuring that the policy remains in force.

This feature is particularly beneficial as it provides financial relief during a time when the policyholder may be facing increased medical expenses and loss of income. It is designed to give peace of mind, knowing that the life insurance coverage will not lapse due to an inability to pay premiums if a disability occurs.

In contrast, the other options incorrectly describe the waiver of premium concept. Premiums being permanently reduced or all premiums being paid by the insurer are not aligned with how the provision operates, and requiring premiums to be paid early does not relate to the waiver of premium feature.