Waiver of Premium Rider

A waiver of premium rider is an insurance policy clause that waives premium payments if the policyholder becomes critically ill, seriously injured, or physically impaired. Other stipulations may apply, such as meeting specific health and age requirements. This clause is typically used with permanent life insurance policies. Most commonly, waiver of premium occurs or is applicable at the point of a disability, but not the death of the policy holder. The question is a waiver of premium rider worth it? One in four people become disabled throughout their careers, making buying additional disability coverage an important precaution. But, most people are better off buying a disability insurance policy instead of adding a waiver of premium rider to a life insurance policy. As long as benefits are being paid out, no further disability premium payments are required from individuals who become disabled and qualify for benefits. The waiver of premium is typically issued after the insured has been continuously disabled for a specified period of time (waiting period). Waiver of Premium would help ensure the policy does not lapse due to non-payment of premiums in the event of you being unable to work due to illness or injury for an extended period of time. A waiver of premium benefit can expire before the term of your policy is up. Often it will do so when the policyholder reaches a certain age - typically 55, 60, or 65. The rationale is that people are more likely to become ill and incapacitated at those ages and people typically retire then. Once the waiver of premium is activated, it will continue to cover your life insurance premiums until one or more of the following conditions is met: -You’re able to return to work -You no longer fulfil the criteria for a claim -The term of the life insurance policy ends #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful