My policy states that I have
waiver of premium. What is this and when will it start?
After all, when was the last time your company sold a group life plan without
waiver of premium? Not only that, but the IRS already has issued a number of private letter rulings allowing employers to offer a disability income feature inside a 401(k) plan.
If disability occurs, look at the life policy for
waiver of premium, the disability policy for the benefit elimination period, the definition of disability, and the benefit period.
Our advice is to join your employer's pension scheme if one is available and, if not, select a current modern flexible contract with a competitive charging structure and
waiver of premium benefit, then review your pension when the new arrangements are finalised as the government intends that it should be possible to convert to a stakeholder scheme if it is in your best interest to do so.
More may be added if they can meet Torquil Clark's tough criteria, including investment performance, financial strength, charging structure and
waiver of premium terms.
The disadvantage with purely lump sum payments is that you generally can't include
Waiver of Premium which protects your future pension against long term illness or injury.