PSI Ohio Insurance Practice Exam

The waiver of premium provision in a life insurance policy is designed to protect policyholders by allowing them to stop paying premiums if they become disabled and unable to work. This feature is particularly beneficial for individuals who rely on their income to pay for their insurance coverage. Essentially, if the insured becomes disabled for a certain period, which is specified in the policy, the insurance company will waive the requirement to pay premiums, ensuring that the life insurance coverage remains in force without financial burden on the policyholder during their time of disability.

This provision is vital for maintaining financial security during challenging times, as it ensures that a policyholder's life insurance protection continues even when their ability to generate income has been compromised. Other options like discounting or refunding premiums or changing payment schedules do not address the intent of this provision to provide specific assistance during a period of disability.