What is the purpose of the payor's benefit in a life insurance policy?

The purpose of the payor's benefit in a life insurance policy is primarily to waive premiums that become due if the payor experiences death or disability. This feature is particularly beneficial in policies where a minor is the insured, as it ensures that the policy remains in force despite the financial challenges that may arise from the payor's inability to make payments due to unforeseen circumstances.

If a payor passes away or becomes disabled, the payor's benefit acts as a safety net, eliminating the need for any additional financial burden on the insured or the beneficiaries, ultimately preserving the life coverage throughout the critical periods. This mechanism allows the policyholder or their beneficiaries to maintain the policy’s protection without the economic strain that a payor's unfortunate circumstances would otherwise impose.