What life policy rider allows the company to forgo collecting the premium if the insured becomes disabled?

The Waiver of Premium rider is an important provision in a life insurance policy that provides significant financial protection for the insured in the event of a disability. This rider allows the insurance company to waive the obligation for premium payments if the policyholder becomes totally disabled for a specific period of time, typically after a waiting period. This means that even though the insured is unable to work and might be facing financial difficulties due to their disability, their life insurance coverage continues without the requirement to pay premiums during this time.

This rider serves as a safeguard, ensuring that individuals do not lose their life insurance policy merely because they cannot afford the premiums due to a disabling condition. It helps maintain the financial security of the insured and their beneficiaries, allowing the insured to focus on recovery without the added stress of premium payments.

In contrast, other options like the Premium Waiver or Disability Rider may seem similar but may not be the precise terminology used in the industry, which can lead to confusion. An Exemption Clause typically refers to stipulations in a policy that outline certain circumstances under which the insurer may refuse to pay a claim, rather than addressing premium payments during disability. Therefore, the Waiver of Premium rider stands out as the correct and relevant answer in this context.