On
a universal whole life policy
, the rider is known as a “waiver of cost of insurance.” The rider covers the cost of the insurance, but not the other portion of the premium that pays for the investment component of the whole life policy.
What is a disability waiver rider?
Your Waiver of Premium Benefit
Total disability or totally disabled means that, due directly to injury or sickness,
you are unable to perform the essential duties of your regular occupation
, are not engaged in any other gainful occupation, and are receiving appropriate physician's care.
Which rider waives the cost of insurance and expenses if an insured becomes disabled?
A waiver of premium rider
is an optional insurance policy clause that waives insurance premium payments if the policyholder becomes critically ill or disabled.
A waiver of premium rider
protects your life insurance coverage from lapsing if you become disabled and can no longer pay your policy's premiums. With a waiver of premium rider, you won't need to make your premium payments—they are waived for the duration of your disability.
Payor Benefit Rider
A rider may be added to the policy of a juvenile stating that if the payor (the one paying the premium) dies or becomes totally disabled prior to the juvenile's reaching majority, the subsequent premiums due are automatically waived.
What is a waiver benefit?
A waiver of premium rider is
an insurance policy clause that waives premium payments if the policyholder becomes critically ill, seriously injured, or disabled
. Other stipulations may apply, such as meeting specific health and age requirements.
What is the advantage of reinstating a policy instead of applying for a new one?
The benefit of reinstating an existing policy rather than applying for a new policy is
that you'll likely pay less
. If your health hasn't changed, your insurer will honor the original pricing on your policy, Ardleigh says. If your health has changed, that could affect your rate (or your insurability).
What type of income continues even if an insured is unable to work?
Disability income (DI)
insurance provides benefits to insureds who are disabled as a result of injury or illness and cannot perform normal work duties.
What is a waiver insurance?
An insurance waiver is
a document that includes the employee's “declaration that you have been offered a plan, however, have chosen to refuse” the coverage offered and why
. Depending on the organization or reason for the request, an employee may be required to provide proof of outside coverage.
Any
life insurance policy worth
having is also worth keeping if and when you become disabled — and this is where the waiver of premium rider comes in. In essence, it is disability insurance for your life insurance, but it is also peace of mind — and you can't put a price tag on that.
Which type of disability is less than total impairment?
Permanent disability that is less than total impairment and equal to permanent impairment is the definition of
permanent partial disability
. The elimination period is the time immediately following the start of a disability when benefits are not payable.
What is accelerated total and permanent disability?
Accelerated Total and Permanent Disability –
a cash benefit deducted from the base plan and paid in advance in case of sickness or injury
. Accidental Death and Disablement – an additional cash benefit in case the insured meets an accident that resulted to death or disability.
When must an insurable interest exist?
For property and casualty insurance, the insurable interest must exist
both at the time the insurance is purchased and at the time a loss occurs
. For life insurance, the insurable interest only needs to exist at the time the policy is purchased.
What happens when a policy is surrendered for cash value?
When a policy is surrendered,
the policy owner will receive all of the remaining cash value in the policy
, known as the cash surrender value. This amount will generally be slightly less than the total amount of cash value in the policy because of surrender charges assessed by the policy.
What part of insurance policy policy benefits are found?
Policy benefits can be found in
the policy brochure or the policy wordings
. The policy brochure will have all the benefits listed in short and the policy wordings will 13 answers · 0 votes: A broad description of the benefits is found in the section that is generically called the
( 8 )
…
What is a children's term rider?
The Children's Term Insurance Rider, if added to a policy,
pays a benefit upon the death of a child of the insured including biological children
, stepchildren, and legally adopted children of the insured who are at least 15 days old and are named in the application.
