Health Insurance Mastery Practice Exam

What policy feature prevents premium payment during a disability period?

1. Cash value accumulation

2. Waiver of premium

3. Policy reinstatement

4. Accidental death benefit

The correct answer is: Waiver of premium

The waiver of premium is a feature in many insurance policies that allows policyholders to skip premium payments during a period of disability. When a person becomes disabled and is unable to work, this feature ensures that their insurance coverage remains active without the financial burden of continuing premium payments. This is especially valuable in times of reduced income due to illness or injury, allowing individuals to maintain their insurance protections without additional stress. The other options, while related to insurance policies, do not serve the same purpose. Cash value accumulation refers to the savings component of certain types of life insurance, which builds cash value over time but does not directly address premium payments during a disability. Policy reinstatement pertains to the process of renewing a lapsed policy, which does not prevent premium payments during disability. The accidental death benefit provides additional coverage in the event of death due to an accident but does not interact with premium payments in the context of disability.