Life Insurance Learning Center - Life Insurance Riders
Waiver of Premium Rider, Part 1.
you want this rider, make sure that it is included in your life insurance quote.
Although make sure that you understand all of the ins and outs of this rider before adding it to your life insurance quote.
Under this provision, if the insured becomes completely disabled before a certain age (like 65) and if it lasts longer than six months, then the premiums are waived. The premiums don't have to be paid by the owner of the policy, but the policy coverage is not terminated. It is continued as if the premiums were being made.
Usually, this waiver will be retroactive to the beginning of the disability. Therefore, any premiums made during the disability are usually refunded.
You can view this waiver as a type of disability insurance against your life insurance policy. It is very beneficial to have this rider attached to your policy because for the term that the insured is disabled, no premiums are required, but the rest of the aspects of the policy continue on as if they were being made, such as the death benefit, the dividends, and the cash values. When the disability ends, the policy owner continues to make the premium payments as if nothing ever happened. There is no requirement to pay the dividends that were not paid during the disability period.
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