California Life-Only & Accident and Health AgentLife InsuranceMedium
A life insurance policy states that the insurer will waive premiums if the insured becomes totally and permanently disabled before a certain age. However, there is a waiting period before the waiver takes effect. How long is this typical waiting period for the Waiver of Premium rider?
- A3 months (90 days)
- B6 months
- C60 days
- D30 days
Show answer & explanationAnswer & explanation
Correct answer: B. 6 months
The Waiver of Premium rider typically includes a 6-month waiting period from the date of disability before premiums are waived. If the insured is still disabled after this period, premiums are waived retroactively to the start of the disability.
Why the other options are wrong
- A. 3 months (90 days) is sometimes seen but 6 months is the more common and standard waiting period in the industry for the Waiver of Premium rider.
- C. 60 days is not the standard waiting period for this rider.
- D. 30 days is too short; this is often a grace period for premium payments.
Waiver of Premium Rider Waiting Period
The standard duration an insured must be totally and permanently disabled before the Waiver of Premium rider's benefits (premium waiver) begin to take effect, typically with retroactive application.
- Applies to the Waiver of Premium rider.
- Insured must be totally and permanently disabled.
- Standard period is 6 months.
- Premiums are usually waived retroactively after the waiting period.
Memory trick: Waiver's 6-month wait: disability's true test.