purchaser insurance

  • Insurance, usually added by a rider, covering the applicant for, or owner of, a policy when such applicant or owner is different from the insured. Purchaser insurance normally provides for waiver of any premiums falling due on the basic policy after the death or disability of the applicant or owner during a specified period after the policy date. Purchaser insurance is most frequently issued in connection with juvenile insurance.

    Internal Revenue Service 1