What does "waiver of premium" mean in life insurance?

A waiver of premium is a rider included in a life insurance policy that provides a significant benefit to policyholders who find themselves unable to make premium payments due to incapacitation. Essentially, if the policyholder becomes disabled and is unable to earn an income, the waiver of premium ensures that their life insurance coverage remains in force without the need to pay premiums during this period of incapacity. This feature is particularly important for protecting the policyholder's beneficiaries, as it prevents the policy from lapsing and ensures continued coverage during a challenging time.

The other options describe features that are not associated with the waiver of premium. Increased benefits without additional costs are more closely tied to promotional offers or specific policy provisions, rather than the waiver itself. Similarly, loans against the policy's cash value pertain to policy loans, a different function within a life insurance contract. Lastly, while some insurance riders may require medical exams for qualification, the waiver of premium typically has its own criteria that do not necessarily include a medical exam, focusing instead on the policyholder's disability status.