Waiver of Premium Rider: Life Insurance Buyer’s Guide (Companies + Rates)
Waiver of premium rider life insurance allows the policyholder to not pay their life insurance premiums if they become disabled. If you have a waiver of premium rider, you may need to go through a waiting period and meet specific requirements set by your life insurance company. Affordable waiver of premium rider life insurance rates are available from several companies.
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UPDATED: Aug 3, 2021
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- Riders provide extra coverage that can improve your life insurance policy
- If you become disabled, your policy premium is covered by a waiver of premium rider
- To activate the waiver, you must meet your insurer’s disability qualifications
- The cost of a waiver of premium rider differs according to the insurance company and your age and health conditions
Some people experience disabilities that costs them the job they use to generate income for themselves and their families. In this situation, it could be difficult to pay their life insurance premiums.
However, with waiver of premium rider life insurance, you don’t have to pay your premiums during the time of your disability. Buying riders like this for your life insurance policy can help you customize your coverage and increase your financial safety net.
Some companies have a specific age limit on who can buy waiver of premium riders. On the other hand, other companies are more flexible.
For instance, Brighthouse, AIG, Principal, SBLI, Protective, Pacific Life, and Banner Life have set a maximum age of 65. As a result, some applicants may fail to add waiver of premium riders because of their age.
If you want to buy waiver of premium rider life insurance, continue reading below to get more information. Enter your ZIP code in the free tool below to compare waiver of premium rider life insurance quotes in your region.
How much is waiver of premium rider life insurance?
A waver of premium rider includes a fee that does not change throughout the policy and is added to the premiums that you pay regularly.
The waiver of premium rider may cost an additional $10-$50 every month.
However, similar to basic life insurance premiums, waiver of premium rider life insurance rates are determined by the insurance company, health classification, and age.
Where can I buy waiver of premium rider life insurance?
You can buy waiver of premium rider life insurance from different life insurance companies in your area. You can do so by adding the rider to your life insurance policy at the time of purchase.
As mentioned above, some companies that offer waiver of premium riders include:
- Lincoln Financial
- Banner Life
- Mutual of Omaha
- Pacific Life
Some providers may not be active in your area, but your choice of waiver of premium rider life insurance companies is not limited to this list. Shop around and compare life insurance quotes from at least three different companies in your region to lock in the best rates.
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What is waiver of premium rider in life insurance?
A waiver of premium rider is a type of insurance policy clause that waives the policyholder’s premium payments if they become disabled, seriously injured, or critically ill.
Policyholders may be interested in purchasing a waiver if they want to ensure that they can keep their policy active if they become disabled, but be aware that your age and health conditions may impact your ability to qualify for this rider.
What is the waiting period on a waiver of premium rider in life insurance policies?
When you become disabled and your premiums are waived, the waiting time is also known as the elimination period.
Most insurance companies have a waiting period of six months. This means that you will still be responsible for paying your premiums during this waiting period, and then your premiums will be waived.
However, the waiting period is determined by the insurance company you have bought your policy from.
For example, AIG, Banner Life, Pacific Life, Principal, Protective, Prudential, SBLI, Transamerica, and Brighthouse have a waiver of premium waiting period of six months. Lincoln Financial has a waiting period of 4 months.
On the other hand, some companies have different waiting periods for unemployment and the disabled. For instance, Mutual of Omaha has a waiting period of one month for unemployment and six months for disability.
What other disability riders are available?
A waiver of premium rider is not the only rider you can add to your life insurance policy. Other additional riders you can include in your policy to protect you if you become disabled or seriously ill include:
- disability income riders
- critical illness riders
- accelerated death benefit riders
- waiver of premium for the payor riders
Keep reading to learn more about these different types of disability life insurance riders and how they can fit into your coverage:
Disability Income Rider
A disability income rider allows the policyholders to stop paying their premium if they are disabled for six months. In addition, a disability income rider may give you some money to replace your monthly salary if you cannot work due to your disability.
Only a few insurance companies provide disability income riders, so shop around to find an affordable provider near you.
Critical Illness Rider
If you are diagnosed with a serious illness, a critical illness rider offers you some money from your death benefit which you can use to pay for treatment costs.
However, you must pay this back or your death benefit will be reduced by that amount after you pass.
Accelerated Death Benefit Rider (ADB)
Some insurance companies include an accelerated death benefit rider for free on their policies. The rider gives you a portion of your death benefit before your death if you are diagnosed with a fatal illness.
Waiver of Premium for the Payor
Suppose you are paying premiums for your loved ones like children or your parents. In that case, the waiver of premium for the payor rider waives premiums if you are disabled or you are not in a position to pay the premiums.
Is waiver of premium rider life insurance worth it?
Every individual can become disabled in their careers, making it an essential precaution for you to buy extra disability coverage. However, most people prefer purchasing a disability insurance policy instead of adding a waiver of premium rider to their life insurance policies.
This is because when you buy a long-term disability insurance policy, you can get monthly benefits of around 60% of your income. Those benefits assist you in paying your expenses and bills.
Therefore, compared to waiver of premium rider life insurance, a disability insurance policy is better because you earn income from it.
With that being said, if you work in a high-risk profession and can’t afford a separate disability policy, a waiver of premium rider may be a good investment.
Start shopping for affordable waiver of premium rider life insurance now. Use our free quote comparison tool below to find a waiver of premium rider life insurance company in your area.