Do Term Life Policies Forgive Premiums if the Insured Becomes Disabled?

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. This rider is available on many renewable-term policies.

Company practice is not uniform with respect to the inclusion of the waiver of premium rider in a new policy obtained by converting a term policy that includes a waiver of premium rider. Some companies do not allow a waiver of premium rider in the converted policy unless the insured shows evidence of insurability. Some companies will permit the converted policy to include a waiver of premium rider without evidence of insurability, but will restrict its operation to disabilities that are the result of injuries sustained or of diseases contracted after the date of conversion.

Reproduced with permission.  Copyright The National Underwriter Co. Division of ALM

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