What benefit does the Payor clause provide on a Juvenile Life policy?

The Payor clause in a Juvenile Life policy is designed to protect the insured child's coverage in the event that the person responsible for paying the premiums, typically a parent or guardian, becomes unable to do so due to a disability. This clause ensures that premiums are waived during this period of disability, thereby preventing the policy from lapsing and ensuring that the child's insurance remains in force without interruption.

This feature is particularly important for juvenile policies because it mitigates the financial risk for families and helps maintain the child's life insurance coverage, which can be difficult to obtain later in life if the child develops health issues. By waiving premiums during times of financial hardship, this clause provides peace of mind to the payor, ensuring that the child's future insurability is not jeopardized.