Because income is likely to drop during disability it is usually advisable to include waiver of premium
in life policies.
Additional riders available Disability Waiver of Premium
Issue age range 25-55 (35-55 in WA) Built-in riders * Waiver of premium
payments for one year in the case of unemployment * In case of disability, payments waived until disability ends or the policyholder turns 65 Premium payment period At the end of the level period (age 65), premiums increase annually for 20 yrs.; annually increasing premiums are guaranteed.
While waiver of premium
is one important feature, there are others also that make it a viable buy for your child's need compared with other products, such as Ulips.
The cash value policy may offer many features not available on the outside investment including: (a) creditor protection; (b) a minimum rate guarantee; (c) waiver of premium
in the event of disability; (d) loan provisions, and (e) a host of flexible nonforfeiture and settlement options.
Other features include the Waiver of Premium
facility (''Own Occupation'' definition is preferred), non-smoker rates and the guaranteed insurability options for such events as marriage,childbirth,moving house etc.
Can the premium increase over the life of the policy, and does the policy contain a waiver of premium
Waiver of premium
. When your claim is accepted and you have received benefits for a set period of time (depending upon your policy) you will not normally be asked to make premium payments during your period of incapacity.
There are many other features you should also consider adding such as waiver of premium
benefit and critical illness cover.
"Waiver of premium
" holidays allow you to suspend payment for a specified period of time.
Waiver of premium
. Generally, most disability income policies offer a waiver of premium
after 90 days, with a full refund of premiums for the original 90-day period.