Which rider provides for a waiver of premium if the policy owner and insured are different people?

The payor benefit rider is specifically designed to provide a waiver of premium in situations where the policy owner and the insured are distinct individuals, such as a parent owning a life insurance policy on a child. If the policy owner becomes incapacitated or passes away, this rider ensures that the premiums on the policy do not have to be paid, protecting the coverage for the insured individual.

This is particularly important in scenarios where the policy relies on the financial responsibility of the policy owner, which may not fall on the insured. By offering this waiver, the payor benefit rider plays a crucial role in maintaining the life insurance coverage without financial strain on the surviving beneficiaries or the insured.

Understanding this rider is essential for effectively navigating life insurance options, especially in family or business contexts where different parties are involved in the policy structure.