Waiver

Pays a monthly income benefit during disability, while waiver of premium only excuses the premiums from being paid — The waiver-of-premium rider provides that the insurer will waive, or excuse, premium payments if the insured becomes totally disabled, so the life policy remains in force without premium outlay during the disability. A disability income rider, by contrast, pays a monthly income benefit to the insured during total disability. One preserves the policy; the other replaces income. Both are commonly added to life policies, but they answer different client needs, and agents must distinguish them when recommending coverage.

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Amend, add to, or delete provisions of the base policy — A rider, also called an endorsement, is a written amendment attached to a policy that adds, deletes, or changes provisions of the base contract. For example, a waiver-of-premium rider adds a benefit that excuses premium payments during disability, while an endorsement might delete a named peril or add an additional insured. Because the rider becomes part of the contract, its terms prevail over conflicting base policy language to the extent of the conflict. Riders are how coverage is customized to the insured's needs without rewriting the entire policy, and each rider typically carries its own premium and must be delivered with the policy so the insured can review it.

National insurance concept