Waiver of Premium Rider

Waiver of Premium Rider

Under this rider, if the policy owner becomes totally disabled, he or she will not be required to pay the premiums on the life insurance policy.

The policy owner must be disabled for a period specified in the rider, usually 3 to 6 consecutive months, before premiums will be waived.

Usually definition of disability is stricter that the definition in a disability policy. Definitions vary from company to company and the policy owner has to be unable to work to collect the waiver of premium.

Most waiver of premium riders exclude disabilities caused by:

  • Self-inflicted injuries
  • Acts of war
  • Pre-existing conditions

Please feel free to contact us at aman@yourinsuranceguy.ca or at 1 416 509 2540 to know how this addition can benefit your insurance planning process.

 

Accidental Death and Dismemberment Rider

Under this rider, the insurance company pays additional benefits if the life insured dies an accidental death or loses a limb or sight because of an accident. The increased death benefit is typically two times the stated death benefit, which is why AD&D coverage is sometimes called Double Indemnity

 

Guaranteed Insurability Benefit Rider (GIB)

This rider gives the policy owner the right to buy additional insurance at a guaranteed price, upto a specified amount, without proving insurability, even if the life of the life insured has deteriorated…

 

Accelerated Death Benefit Riders

These riders provide for the payment of benefits before the life insured dies. These are called Living benefits. Accelerated death benefit is a pre-payment of benefits and not an additional benefit.  The death benefit paid when the life insured dies will be reduced by any accelerated benefits paid prior to death, plus accumulated interest to the date of death.

 

Prepared by:  Aman Kapur

 

Leave a Comment

Your email address will not be published. Required fields are marked *