When Is Payor Benefit Used?

Payor Benefit — a provision under which premiums are waived if the person paying the premiums becomes disabled or dies. This option is often used when the insured is the child or spouse of the policyholder.

What is the advantage of a payor benefit rider?

The Payor Benefit Rider waives premium due on a child's policy in the event of the premium payor's death or total disability occurring before the insured person's 25th birthday.

What does payor mean in insurance?

A payer, or sometimes payor, is a company that pays for an administered medical service. An insurance company is the most common type of payer. A payer is responsible for processing patient eligibility, enrollment, claims, and payment.