Under which circumstance will the payor rider waive premiums on a life insurance policy?

The payor rider is an important feature in life insurance policies designed to protect the policy's coverage in the event of specific circumstances affecting the policy owner, usually the parent or guardian of the insured. This rider typically stipulates that if the policy owner dies or becomes disabled before the insured reaches a specified age, such as 21 or 25, the insurance company will waive all future premium payments. This ensures that the life insurance coverage remains in force for the insured child even if the primary financial contributor is no longer able to pay premiums due to their death or disability.

This arrangement is attractive to policyholders who want to ensure that their dependents are financially protected regardless of unforeseen circumstances affecting their ability to pay premiums. Therefore, the correct choice reflects a scenario that aligns with the typical functionality of a payor rider, emphasizing the protection of the insured's life insurance coverage during critical life events for the policy owner.