What term describes an optional provision that waives premium payments if the policyholder becomes disabled?

The term that describes an optional provision allowing for the waiver of premium payments if the policyholder becomes disabled is known as the Payor Benefit Rider. This rider is specifically designed to assist policyholders who experience a qualifying disability, ensuring that their life insurance coverage remains in force without the added burden of premium payments during a challenging time.

Many policyholders appreciate this rider as it secures their insurance against lapsing due to financial constraints imposed by disability. This benefit provides peace of mind, knowing that their loved ones will still be protected even if they cannot fulfill their premium obligations because of their disability.

The other options pertain to different functions. The Accidental Death Rider provides additional benefits if the insured dies as a result of an accident. The Grace Period Rider allows for a short grace period to make premium payments without losing coverage. The Accelerated Benefit Rider allows for access to a portion of the death benefit under certain conditions, such as terminal illness, but it does not address premium waivers in case of disability.