There’s one thing that every life insurance policy you have should not be without: waiver of premium.
Waiver of premium is a rider that you can add to any type of life insurance policy. It pays the premium for you if you are disabled. This rider will vary slightly from company to company but will usually kick in after you are disabled for 6 months. What premium is paid will vary slightly depending on the type of policy.
Universal Life Insurance
The waiver of premium on most Universal Life insurance policies will pay the greater of the monthly charges within the policy or a specified amount designated by the policy owner at issue.
Whole Life Insurance
The waiver of premium on most Whole Life insurance policies will provide the premiums for the base policy as well as most additional riders.
Term Life Insurance
The waiver of premium on most term life insurance policies will provide the premiums for the policy. Convertible term insurance will usually have a added waiver benefit which would allow the policy owner to convert the term insurance into a more permanent policy during the disability thus having the waiver of premium continue to provide the premiums for the policy as long as the disability continues.
For example, if you had a 20 year convertible term insurance policy with the waiver of premium and you became disabled during that policy, while the waiver of premium rider was providing the premiums, you would have the option to convert to a more permanent life insurance policy and continue to have the waiver of premium provide the premiums for the life insurance policy.
Waiver of premium, it’s your life insurance’s sidekick.
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