How does a payor benefit rider typically function?

A payor benefit rider is designed to protect the insured child’s life insurance policy in the unfortunate event that the person responsible for paying the premiums (the payor) passes away or becomes disabled. With this rider in place, the insurance company waives the premium payments that are typically due on the policy. This means that the policy remains in force without requiring any further payments from the payor, thus ensuring that the child’s insurance coverage continues uninterrupted despite the financial setback.

This function is especially beneficial, as it provides peace of mind to the payor and secures the insurability of the child, allowing the policy to remain valid during a potentially challenging time. The essence of this rider is to alleviate the financial burden of premium payments, thus preserving the investment in the child's life insurance coverage.