In what type of insurance is the waiver of cost of insurance rider commonly found?

The waiver of cost of insurance rider is most commonly associated with universal life insurance. This rider allows the policyholder to waive the cost of insurance premiums in the event of a disability, thereby ensuring that the policy remains in force even if the policyholder is unable to make payments due to unforeseen circumstances.

Universal life insurance already offers flexibility in premium payments and death benefits, making it ideal for the application of this rider. When the waiver is applied, the policy's cash value is not diminished by the waived premiums, which is a unique characteristic of universal life policies.

In contrast, term life insurance provides coverage for a specified period without a cash value component, while whole life insurance typically involves fixed premium payments and does not usually incorporate waivers specific to costs of insurance in the same way. Endowment insurance, while offering both life cover and a savings component by the end of a specified term, also does not typically feature this rider. Thus, the specific design and characteristics of universal life insurance align perfectly with the purpose and utility of the waiver of cost of insurance rider.