Term Life Insurance Articles
Is Putting A Waiver Of Premium For Disability Rider A Good Option For My Term Life Insurance
2010-01-09
When you're buying life insurance, it pays to consider every possible policy option to see what will work best with your lifestyle. Fortunately, many plans can be customized using riders, which can be a lifesaver if you find yourself with health problems or in financial trouble. Term life insurance riders are add-ons to a typical contract that can be used to further guarantee certain options for a policyholder. One of the more common riders is a Waiver of Premium for Disability rider, sometimes referred to simply as a WP rider.
WP riders are designed to offer insurance policy breathing room when the policyholder suffers from a debilitating illness. The basic function of the rider is to allow policyholders to skip payment of any premiums as long as they're seriously ill. Most of the time, insurance companies require proof that an illness has persisted for at least six months before the WP rider will kick in. Any payments made during that first six months are refunded under many contracts. Ongoing proof of illness is often required as well. When it comes to WP riders, age may also be a factor in many contracts. For example, young children may be exempted from a Waiver of Premium for Disability rider, while persons older than 65 could potentially see more benefit.
If you do come down with a serious illness, a Waiver of Premium for Disability rider can be immensely helpful. It can help you to avoid invalidating your term life insurance policy through lack of payment. Every policyholder should therefore consider adding this option, especially those with minimal health insurance. Many fatal diseases can debilitate a person for many months or even years before causing death, and in these cases, keeping an active life insurance policy might be all but impossible without a WP rider. However, it's important to understand that different insurance companies treat riders very differently. Therefore, you should carefully read over the language in your contract when looking for a term life insurance quote. Before adding in a rider, make sure that it will work in a way that will benefit you if you become disabled.
Of course, the majority of term life insurance policyholders will never use their WP riders, but that doesn't mean that such riders aren't incredibly helpful and important. Remember, the point of buying insurance in the first place is to plan for the unexpected. If you can afford the additional cost of a Waiver of Premium for Disability rider, which is typically low in comparison to your policy's premiums, it's well worth consideration. It's added protection for your term life insurance policy, and might serve to protect your beneficiaries when you're ill.
