Paul and Katie are a married couple and self-employed business owners of the Bella Hair Salon. The salon has enjoyed steady success for 10 years and they are at the point where they need a financial plan. Paul and Katie want to start planning for retirement and they want to obtain disability insurance. While they feel that they need coverage in the event that either of them becomes disabled and cannot work, they also do not want to waste their money on premiums that they will see no return or benefit from. Which of the following statements is correct?

A return of premium rider would typically provide a return (refund) of premiums paid which would be taxable when the policy expires.

A waiver of premium rider would typically refund 70% of all premiums paid to the policyholder when coverage expires.

A return of premium rider would typically not return premiums if the total benefits paid out over the life of the policy exceeded the total premiums paid.

A waiver of premium rider would typically pay the difference between the total premiums paid into the policy less the benefits paid out at policy expiry.