What does the forgiveness of premium rider do?

The forgiveness of premium rider is designed to waive premium payments during a period of disability. This means that if the policyholder becomes disabled and is unable to work, they do not have to continue making premium payments while they are incapacitated. This rider is a valuable addition to a policy because it helps to maintain coverage during times when the insured may be facing financial difficulties due to their inability to earn an income.

In the event of disability, the rider effectively allows the policyholder to keep their life or health insurance in force without the financial burden of continuing to pay premiums, which could be particularly challenging during such times. This safeguard strengthens the policyholder's insurance protection without interruption, ensuring that their coverage remains intact.

While the other options reflect features that are typical in insurance policies, they do not accurately depict the specific function of the forgiveness of premium rider. For example, increasing the policy benefit, granting an early payout, or reducing total premium costs do not align with the primary purpose of preserving coverage through premium waivers during disabilities.