What is one benefit of a waiver of premium rider?

The waiver of premium rider is designed to provide financial relief by eliminating the premium payments on a life insurance policy if the policyholder becomes disabled and cannot work. This feature ensures that the policy remains in force during the period of disability, preventing a lapse in coverage and helping to maintain the life insurance protection for beneficiaries. This benefit is particularly important for individuals who may face financial strain due to their inability to earn an income while disabled.

In contrast, the other options do not reflect the true purpose of the waiver of premium rider. For instance, increasing the death benefit amount or guaranteeing higher returns on investment are not functions of this rider. Additionally, allowing free policy transfers falls outside the scope of what a waiver of premium rider is meant to provide. The primary focus of this rider is specifically related to maintaining coverage during a period of financial hardship due to disability.