Disability Income Insurance Riders

Waiver of premium rider 

Under the waiver of premium provision the insurer agrees to waive all premiums which come due after the insured becomes totally and permanently disabled. In almost all cases the insured must be disabled for six months before the company begins to waive the premiums; however, the insured is reimbursed for any premiums paid during the first six months of disability. 

Usually waiver of premium does not apply if the disability occurs after the ages of 60 or 65. However, the company will continue paying the premiums as long as the insured is disabled even though he passes the limiting age. 

Disability Rider 

While similar in many respects to separate disability income contracts, income riders are geared to the face of the life policy rather than to the insured’s income. Typically, these riders provide for the payment of $10 a month for each $1,000 of life insurance. These income benefits may be paid for life, to age 65 with one-half the benefit payable for life thereafter, or to age 65 at which time the benefit matures as an endowment. The disability must occur before some limiting age and must continue for six months before the insured receives any payment. Usually at the end of the sixth month, the insured receives his first payment with payments continuing as mentioned previously.