The waiver of premium or waiver of charges riders, which are common riders to most permanent life policies, provides that premiums or policy charges 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. A few companies have an even more liberal design that allow an insured who is currently receiving benefits under the disability waiver on his or her term policy to convert it to a permanent policy and continue to have the premiums waived under the disability waiver on the new policy.
Reproduced with permission. Copyright The National Underwriter Co. Division of ALM