If you become disabled and your life insurance policy contains a waiver-of-premium benefit, you will not have to pay the life insurance premiums as long as you are disabled. However, the disability must be total and must last for at least six months. Certain exclusions also apply.

Some life insurance contracts automatically provide the waiver-of-premium benefit. For most contracts, the benefit is optional, and when you apply for coverage, you must ask that a rider be attached to your policy to receive the benefit. In the latter case, you will pay an additional premium.

The waiver-of-premium provision has a waiting period of six months. That is, the insurance company waits six months from the beginning of your disability before it actually waives the premium. So, you must continue to pay life insurance premiums until the six months have passed, regardless of the severity of your disability. If the waiting period is over and you are still totally disabled, the insurance company will waive the premiums retroactively.  There are some injuries for which the waiver-of-premium provision does not apply. These exclusions include intentional self-inflicted injuries and those resulting from war while the insured is in the military. Also, contracts may limit the benefit to those under the age of 60.

We believe you certainly should add waiver-of-premium rider to cash value policy if you are younger than the age of 50. For term life insurance policy, if the premium is very small and affordable even during the disability then you should avoid adding this rider as it will raise the premium.

Please call BeamaLife Specialist at (866) 972-3262 to discuss this rider in detail.