Life License Qualification Program (LLQP) Practice Exam

Which provision suspends premium payments during a period of total disability?

1. Probation Period

2. Grace Period

3. Waiver of Premium

4. Elimination Period

The correct answer is: Waiver of Premium

The Waiver of Premium provision is designed to protect policyholders during times of financial hardship due to a total disability. When this provision is in effect, the insurer agrees to waive the requirement for premium payments during a specified period of total disability, ensuring that the policy remains in force without any financial burden on the insured. This is particularly beneficial for individuals who may no longer be able to work and earn income due to their health condition. In contrast, other terms mentioned in the options refer to different aspects of insurance policies. The probation period generally sets a waiting time for coverage to begin, often used to determine whether a policyholder's existing conditions may affect coverage. The grace period allows policyholders a specific time after the premium due date to make payments without losing their coverage. The elimination period refers to a waiting period before benefits are paid out in disability policies. Each of these terms serves a different purpose related to insurance policy management, but the Waiver of Premium specifically addresses the need to suspend premium payments during a time of total disability, making it the correct choice.