What is the primary function of the waiver of cost of insurance rider found in universal life insurance?

The primary function of the waiver of cost of insurance rider in universal life insurance is to waive the cost of insurance if the insured becomes disabled. This rider is designed to ensure that even if the policyholder is unable to pay premiums due to a disability, the policy remains in force without incurring additional costs for the insurance coverage. This is particularly important because it helps prevent the policy from lapsing during a potentially challenging financial time when the insured might not have a source of income.

Other options may sound appealing but serve different purposes. For instance, while increasing the cash value of a policy is beneficial, it is not the function of the waiver of cost of insurance rider. The waiver of cost of insurance specifically focuses on maintaining policy coverage during disability, not on enhancing the policy’s cash value. Similarly, borrowing against the cash value is a separate feature associated with universal life insurance that allows policyholders to take loans against their savings. Lastly, providing an additional death benefit does not align with the intent of this rider, as its specific role is to ensure that the cost of insurance is covered in the event of a disability, rather than enhancing the death benefit amount.