Want to understand how the waiver of premium can help during disability.
Total Comments: 4
Posted: Wed Jan 30, 2013 07:18 pm Post Subject:
By paying the added cost, if you become disabled for more than 6 months, according to the definition in the rider (probably "any occupation"), the insurance company will waive the payment of premiums as long as you remain disabled. But they will not pay the interest on any policy loans you may have outstanding, which could still cause your policy to lapse.
Posted: Thu Jan 31, 2013 10:42 am Post Subject:
With this form of rider, the benefits remain in place and the policy doesn't lapse even if the insured doesn't pay the premiums anymore.
Posted: Thu Jan 31, 2013 10:59 am Post Subject:
The "any occupation" clause can make it difficult though. If the insured is able to work in any other way, even if that's not the usual occupation or the occupation in which he has expertise, he'll have to pay for the premiums or see his policy lapse.
Posted: Thu Jan 31, 2013 11:04 am Post Subject:
the policy doesn't lapse even if the insured doesn't pay the premiums anymore.
It's not a matter of "even if" -- that's the whole point of a WAIVER. The policyowner DOES NOT PAY premiums once the waiver takes effect and for as long as it remains in effect.
Posted: Wed Jan 30, 2013 07:18 pm Post Subject:
By paying the added cost, if you become disabled for more than 6 months, according to the definition in the rider (probably "any occupation"), the insurance company will waive the payment of premiums as long as you remain disabled. But they will not pay the interest on any policy loans you may have outstanding, which could still cause your policy to lapse.
Posted: Thu Jan 31, 2013 10:42 am Post Subject:
With this form of rider, the benefits remain in place and the policy doesn't lapse even if the insured doesn't pay the premiums anymore.
Posted: Thu Jan 31, 2013 10:59 am Post Subject:
The "any occupation" clause can make it difficult though. If the insured is able to work in any other way, even if that's not the usual occupation or the occupation in which he has expertise, he'll have to pay for the premiums or see his policy lapse.
Posted: Thu Jan 31, 2013 11:04 am Post Subject:
the policy doesn't lapse even if the insured doesn't pay the premiums anymore.
It's not a matter of "even if" -- that's the whole point of a WAIVER. The policyowner DOES NOT PAY premiums once the waiver takes effect and for as long as it remains in effect.
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