how a waiver of premium rider works
policyholders often add the rider as an optional or supplemental benefit to a life insurance policy it s available only when a policy is issued and costs vary per insurer and applicant insurance companies typically add the rider fee to the premium or charge an upfront fee this fee raises the cost of a life insurance policy 2most waiver of premium riders contain a waiting period during which you cannot claim of benefits if you are physically impaired or hurt during the waiting period you may receive a full refund of paid premiums without a waiting period the insurer company assumes much more risk losses 1applicants with pre existing disabilities can t qualify for benefits from a waiver of premium rider placing a pre existing limitation avoids the possibility of writing a policy that would not yield premium payments from the high risk applicants 3waivers can be added if available to term whole and universal life insurance policies waiver of premium rider benefitsphysical impairment critical illness and severe injury are the most common qualifying conditions under the waiver of premium rider terms conditions and benefits vary by insurance product and issuing company a policyholder must be disabled for a specific period e g six consecutive months before the premiums waiver goes into effect 1the waiver is also useful if an injury or illness prevents the policyholder from working in a traditional capacity the most commonly considered diseases are those that require significant hospital stays resulting in the policyholder being unable to work some riders stipulate that the condition need only adversely affect the policyholder s occupation 4waiver of premium riders may not be available in all states waiver of premium claim requirementsrequirements for filing a claim vary but they typically include a physician s statement and notice from the social security administration ssa confirming the physical impairment or disability the applicant could then submit a completed claim form the waiver of premiums allows the redirection of limited personal funds to palliative care personal finances and living expenses however the most signficant benefit is the continued protection of the insurance policy 4