Life License Qualification Program (LLQP) Practice Exam

Which of the following is a result of the waiver of premium provision?

1. Forfeiture of policy benefits

2. Delayed benefit payments

3. Maintained coverage during total disability

4. Permanent cancellation of policy

The correct answer is: Maintained coverage during total disability

The waiver of premium provision is designed to protect policyholders who become totally disabled. When this provision is in effect, if the insured person is unable to work due to a qualifying disability, they are exempted from having to pay premiums for their life insurance policy. This ensures that their coverage remains intact even during a period when they may not have the financial means to pay premiums due to their condition. Maintained coverage during total disability is crucial, as it allows individuals to continue having life insurance protection and not lose their policy benefits simply because they can no longer afford to pay premiums. This provision is particularly important for financial stability, as it can prevent an individual from facing the double burden of managing a disability while also worrying about losing essential insurance coverage. The other options do not accurately reflect the primary benefits of this provision. Forfeiture of policy benefits, delayed benefit payments, and permanent cancellation of the policy do not align with the nature of a waiver of premium, which is specifically aimed at maintaining the insured’s coverage while ensuring they are not financially penalized for being unable to work.