Waiver of Premium Rider
A waiver-of-premium rider waives specified policy premiums when the covered person satisfies the rider's disability and other conditions. The covered person, waiting period, ages and duration depend on the contract.
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Exam Tip
Waiver of premium maintains specified coverage after a qualifying disability. Check the covered person, disability definition, waiting period, age limits, proof and scope; it is not disability-income cash.
What Does Waiver of Premium Do?
A waiver-of-premium rider relieves the specified premium obligation when the covered person meets the rider's disability requirements. It is different from disability-income insurance, which pays a cash benefit for living expenses.
Read the Rider
| Provision | What to verify |
|---|---|
| Covered person | Usually the insured; a payor rider may cover a different person |
| Disability | The actual own-occupation, any-occupation or changing definition |
| Waiting period | How long qualifying disability must continue before waiver applies |
| Age conditions | Eligible issue ages, age at disability onset and benefit duration |
| Proof | Initial claim evidence and any continuing evidence requirements |
| Premium scope | Which base-policy premiums, rider premiums or specified charges are waived |
| Retroactive treatment | Whether qualifying premiums paid during the waiting period are refunded |
A rider may require a multi-month waiting period; the actual contract controls. Continue required payments while the claim is pending unless the insurer confirms otherwise. Do not assume premiums are waived from the first day of disability or that all benefits end at age 65.
Cost and Benefit
Obtain the actual rider quote. There is no single national percentage of base premium that establishes its price. Waiver preserves the coverage specified in the contract; it is not an unrestricted cash payment to the owner and does not necessarily pay every charge on every type of policy.
Payor Riders
On a juvenile policy, a payor waiver can apply to the specified adult's disability or death as the rider provides. Confirm whose disability triggers the benefit rather than assuming owner and insured are the same person.
Sources: NAIC life insurance rider guidance and California insurance guide.
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