The addition of a waiver of premium rider brings an additional element of protection to a life insurance policy.
Preferably, a term life insurance policy's waiver of premium rider and conversion privilege will work simultaneously.
Answer--The waiver of premium rider
, which is a common rider to most permanent or ordinary whole life policies, provides that premiums are waived if the insured becomes totally and permanently disabled.
Some life insurance riders that have become common include: level term riders; accidental death benefit riders; waiver of premium riders
; and guaranteed insurability riders.
Green and Rubin also recommend waiver of premium riders
and DI coverage for most of their clients.
Disability Waiver of Premium riders
generally waive the premiums due on a whole life insurance policy if an individual is disabled and unable to work.
"Our VUL products, which now boast asset allocation, guaranteed accumulation and waiver of premium riders
, also are enjoying greater growth in percentage terms, though off a smaller base."
How are policy guarantees and promises (such as guaranteed interest rates and waiver of premium riders
) reflected in software projections?