L&HNationalmedium
An insured with a Waiver of Premium rider becomes totally disabled and remains so beyond the 6-month elimination period. Under a typical rider, how are premiums that fell due during the elimination period treated once the claim is approved?
AThey are permanently forfeited; only premiums falling due after the elimination period ends are ever waived
They are refunded retroactively to the insured upon claim approval, and future premiums are waived prospectively
CThey are doubled by the insurer and then credited directly into the policy's accumulated cash value account
DThey are converted into an automatic interest-bearing policy loan that must be repaid in full within 60 days of the insured's recovery from disability
Why this is the answer
The Waiver of Premium rider imposes an elimination period (typically 4-6 months) during which the insured must continue paying premiums while waiting to confirm that disability is total and presumptively permanent. Once the carrier approves the claim, all premiums paid during the elimination period are refunded retroactively, and premiums coming due thereafter are waived prospectively for as long as total disability continues, with periodic proof of loss. The policy remains fully in force — cash value continues to accumulate and dividends continue, under typical rider terms.
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