Definition of the “Waiver of Premium Rider”.

The waiver of premium rider waives the payment of all life insurance premiums due while the primary insured is totally and permanently disabled.

Benefit.

This rider could be the difference in keeping your policy in place or having to cancel or let your life policy lapse. Let’s face it, if you become disabled it will be tough to pay your bills. Let alone a life insurance bill. However, are you willing to give up the protection you have put in place for your family.  If you have the rider in place you won’t ever have to make that critical decision. The premiums will be waived and the policy will remain in tact.

Cost.

Here is the cost of the waiver of premium rider for a 36 year old male.  We ran quotes at Preferred Non-Tobacco rates to see  how much increase in cost would be to add the rider to your policy.

36 year old maleCost Without RiderCost With Rider
$250,000Preferred Non-TobaccoPreferred Non-Tobacco
10 year term$152$180
20 year term$213$247
30 year term$323$372

 

Waiting Period.

The waiver of premiums payments could have a waiting period involved.  Each company offering their own time line for the waiting period.  For example, one company could make you wait six months before you can exercise this rider.  You want to read the fine print in the policy back to really know how long the waiting period is for this rider.  You can also ask your agent how long the waiting period is when gathering quotes. A good agent should be able to tell you the answer quickly.

Is the Waiver of Premium Rider Worth It?

This rider will be worth it if you become disabled.  Just look at the 10 year quote above, the rider only adds an additional cost of $28 a year. That’s a little more than $2 a month. It comes down to the old saying you get what you pay for.

If You’re Self Employed.

The waiver of premium rider for an individual who is self employed can be huge. Most self employed individuals don’t have disability benefits offered thorough an employer, so often they are on their completely on their own in the event of a disability. With no benefits through an employer you need to have all the help you can get. This rider could be just one way to help a self employed individual who becomes disabled an can not afford his premium payment.