Waiver of premium is a common benefit option associated with which type of policies?

The waiver of premium benefit is most commonly associated with disability and long-term care plans. This feature allows policyholders to suspend premium payments without losing coverage in the event they become disabled and are unable to work. The premise behind this benefit is that if a person is unable to earn income due to their disability, they should not have the additional burden of paying premiums for their insurance policy. By waiving premiums, the policy remains in force, ensuring that individuals maintain their coverage during a critical time when they may need it most.

Other types of policies listed, such as medical, limited benefit, and dread disease plans, do not typically include a waiver of premium feature. Medical plans may have different stipulations regarding coverage and payments, while limited benefit and dread disease policies are more specific in nature and may not address permanent disabilities in the same manner as disability and long-term care plans. Thus, the primary association of the waiver of premium feature lies with disability and long-term care insurance coverage.