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Whenever you purchase a life insurance policy, you will be informed about riders that enhance the coverage and protection. However, have you heard about a rider that waives premium payment in case of a disability? Many individual life insurance policies include a rider, which will waive the premium upon total disability.
The rider will be useful in case of a temporary or permanent disability because of an accident. Many policies pay you a certain percentage of the sum assured regularly for the next five to ten years, making it an ideal income replacement mode. You need to remember that the rider will only come into force when a disability occurs due to an accident.
The definition of disability will be included in your policy documents. Many insurers consider total disability as an inability to perform substantial duties related to your occupation. In addition, a disability should be due to an accidental injury. Any pre-existing conditions will remain excluded. The insurer can review the insured’s status during different time intervals and the definition of disability can change with time; for instance after five or seven years.
Purchasing a rider is a great way to cover the expenses related to disability and loss of income. When you buy life insurance online, you can consider the cost of a rider and then make a decision. If you have a rider, which waives the premium, it will make a lot of sense in the long term. You will not have to pay the premium and will continue to receive regular income from the insurance company.
Read the fine print and understand what qualifies as a disability and what does not. You need to ensure that the rider works as per your requirements. Paying an additional expense will make sense when the benefit from the same outweighs the cost. It is ideal for those who would find it difficult to make premium payments when you are out of work.
Ref. No. KLI/22-23/E-BB/492
