What is the main purpose of the waiver of premium benefit?

The main purpose of the waiver of premium benefit is to enable the insured to not pay premiums while receiving benefits. This provision is especially useful in situations where the policyholder becomes disabled or unable to work due to a covered condition. In such cases, the insured may struggle with financial obligations, including making premium payments on their insurance policies. The waiver of premium benefit ensures that the insurance coverage remains in force without requiring payment of premiums during the period of disability, thereby providing essential financial protection and peace of mind to the insured.

This provision is particularly vital for disability income policies, as it allows the insured to focus on recovery without the additional burden of maintaining premium payments. Through this benefit, the intent is to protect the individual’s financial stability at a critical time, ensuring that they do not lose their insurance coverage due to an inability to pay premiums while they are already facing hardships.