What does "waive premium" mean in life insurance?

The term "waive premium" in life insurance refers to a provision that allows a policyholder to suspend premium payments when they become disabled or seriously ill. This feature ensures that the policy remains in force even if the insured is unable to make the regular premium payments due to their debilitating condition.

This provision is beneficial for individuals who may face financial challenges during a period of illness, as it provides peace of mind that their life insurance coverage will continue without the burden of premium payments. This aspect of life insurance is designed to protect both the policyholder and their beneficiaries, especially during challenging times.

The other options provided do not accurately describe the "waive premium" provision. For instance, simply forgetting to pay premiums does not grant any formal rights or protections related to the policy. Increasing the premium amount during the term does not fall under the definition of waiver; it relates to policy adjustments rather than suspension of payment obligations. Lastly, transferring benefits to another policyholder does not capture the essence of waiving premium payments, as it pertains to ownership or beneficiary designations rather than the suspension of financial obligations during hardship.