If an insured becomes disabled, what is the impact on their premium payments if a waiver of premium is in effect?

When a waiver of premium is in effect, it means that the insurer will waive the requirement for the insured to continue making premium payments while they are receiving disability benefits. This provision is designed to protect the insured during times of financial difficulty brought on by their disability. As a result, during the period that the insured is deemed disabled and eligible for benefits, the payments for the insurance premiums are suspended.

This mechanism ensures the insured can maintain their coverage even when they are unable to work and earn an income, thus preventing a lapse in policy due to non-payment. It's a critical aspect of many life and health insurance policies, providing financial relief and peace of mind during challenging times. The other options suggest different scenarios that would not typically apply when a waiver of premium is in effect.