Which term describes a provision that allows the policyholder to skip premium payments while keeping the coverage active?

The provision that enables the policyholder to skip premium payments while maintaining coverage is referred to as Waiver of Premium. This rider is particularly beneficial in situations where the insured becomes disabled and is unable to earn an income, allowing them to preserve their life insurance coverage without the burden of making premium payments during the period of disability.

This rider effectively ensures that the policyholder's life insurance remains in force, providing peace of mind and financial support during challenging times. It is important to assess whether this option is part of a policy, as its availability can vary based on the specific terms of the insurance contract.

In contrast, other options like Paid-up Additions, Grace Period, and Extended Term Option do not serve the same function. Paid-up Additions refer to additional coverage purchased through dividends, while a Grace Period is simply a short time frame after a payment due date during which the policyholder can make a payment without losing coverage. The Extended Term Option allows a policyholder to use the cash value of a whole life policy to continue coverage for a limited time without premium payments, but it does not equate to skipping premiums like the Waiver of Premium does.