Why can the waiver of premium rider only be added to a term policy?

The waiver of premium rider is specifically designed to be added to term life insurance policies primarily because term policies do not accumulate cash value. The fundamental reason for this is that the waiver of premium rider provides a safety net for policyholders in case of total disability. When a policyholder becomes disabled, this rider allows them to maintain their life insurance coverage without the obligation to pay premiums during the period of disability.

Since term life insurance does not build up cash value, if the policyholder is unable to pay premiums due to a disability, there is a straightforward process for the insurer to waive those premiums without the complication of managing any accumulated value. In contrast, permanent life insurance policies, which do build cash value, have other considerations such as the management of that cash value and potential loan options against it, making the waiver of premium feature less relevant or practical.

Thus, the non-accumulation of cash value in term life insurance policies aligns perfectly with the features and benefits of the waiver of premium rider, making option A the correct choice.