Which of the following explanations best describes the purpose of the waiver of premium provision of a life insurance policy?
Asked by: Mr. Aiden Heathcote | Last update: July 28, 2023Score: 5/5 (24 votes)
Which of the following explanations best describes the purpose of the waiver of premium provision of a life insurance policy? It waives the insured's premiums if the insured is totally disabled before a specified age.
What does waiver of premium mean in life insurance?
A waiver of premium rider is an insurance policy clause that waives premium payments if the policyholder becomes critically ill, seriously injured, or physically impaired. Other stipulations may apply, such as meeting specific health and age requirements.
What is the waiver of premium benefit?
What Is a Waiver of Premium for Payer Benefit? A waiver of premium for payer benefit rider in an insurance policy states the insurance company will not require the payor to pay premiums to maintain the plan under certain conditions.
Which of the following statements about the waiver of premium rider in a life insurance policy is true?
All of the following statements are true regarding the waiver of premium rider for a life insurance policy, EXCEPT: The policyowner is not required to pay back the waived premiums if they recover from the disability.
Under what conditions will the waiver of premium rider pay benefits quizlet?
Under what conditions will the waiver of premium rider pay benefits? The waiver of premium rider stipulates that the insured must be totally and permanently disabled in order to pay benefits.
Waiver of Premium Explained
What is the waiver of premium provision quizlet?
The waiver of premium provision keeps the coverage in force without premium payments if the insured has become totally disabled as defined in the policy.
Which of the following statements is true regarding a waiver of premium rider quizlet?
Of the following, which is not a term rider? All of the following statements are true regarding the waiver of premium rider for a life insurance policy, EXCEPT: All waived premiums must be repaid if the policyowner recovers from the disability.
Which of the following explains why a traditional waiver of premium rider does not work with a universal life insurance policy?
Premium amounts for a universal life policy are flexible, whereas they are fixed for traditional life insurance policies. Because universal life premium payments are flexible, there is no defined amount to be waived.
What is a waiver in insurance?
An insurance waiver is a document that includes the employee's “declaration that you have been offered a plan, however, have chosen to refuse” the coverage offered and why. Depending on the organization or reason for the request, an employee may be required to provide proof of outside coverage.
What is waiver of Premium Legal and General?
What is Waiver of Premium? Waiver of Premium means that you won't have to pay your premiums after 26 weeks if you are incapacitated due to illness or injury and are unable to do your normal job.
What is a waiver of premium provision?
What Is a Waiver of Premium Disability? Waiver of premium for disability is a provision in an insurance policy that states the insurance company will not require the insured to pay the premium if they are seriously injured.
What does waive of premium mean?
What is Waiver of Premium? This is an additional insurance for the premium itself and usually means that the policy will be paid for by the insurance company if you are off sick and unable to work, typically for a period of more than 6 months.
In what situation does a waiver of premium provision keep a health insurance policy?
In what situation does a waiver of premium provision keep a health insurance policy in force without premium payments? The waiver of premium provision keeps the coverage in force without premium payments if the insured has become totally disabled as defined in the policy.
What is the initial requirement for an insured to become eligible for benefits under the waiver of premium provision?
In most cases, you must be less than 60 years of age when the disability begins in order to qualify for Waiver of Premium. The provision amount in force on the date of disability is then maintained until the age listed in the policy (typically age 65) without the payment of premium.
What is the waiting period on a waiver of premium rider in life insurance policies quizlet?
Most waiver of premium riders require that the insured be totally disabled for six months before the waiver begins. This is called the "waiting period." Some riders, however, require only a four-month waiting period. Premiums are payable during the waiting period.
What provision in an insurance policy extends coverage beyond the premium due date?
What provision in a insurance policy extends coverage beyond the premium due date? Grace period. Grace period is a mandatory provision found in all life and health insurance policies that provides coverage for a period of time after the premium becomes past due.
What is the purpose of a waiver?
A waiver is a demonstration, usually in written form, of a party's intent to relinquish a legal right or claim. The key point to note is that the relinquishment is voluntary, and can apply to a variety of legal situations. Essentially, a waiver removes a real or potential liability for the other party in the agreement.
What does a medical waiver mean?
A medical waiver permits an immigration applicant to be allowed into, or remain in the United States despite having a health condition identified as grounds of inadmissibility. Terms and conditions can be applied to a medical waiver on a case by case basis. Source: U.S. Citizenship and Immigration Services.
What is health waiver?
This basically means that an applicant (and any dependant's included on the applicant's application), must pass a health test to be granted the visa they have applied for.
When can a waiver of premium rider be added to a life insurance policy?
But there is usually a six-month waiting period before you can have your premiums waived. Typically, the benefits of this rider will end once the policyholder is no longer disabled. If the disability proves to be long-term, the premium payments will be covered up until a certain age, such as 65 or 70.
Which type of rider will waive the premium on a child's life insurance policy if the parent?
Juvenile insurance may be sold with a payor benefit rider, which provides for waiving future premiums on the child's policy in the event of the death of the person who pays the premium.
What is the waiver of premium called on a universal life insurance policy quizlet?
Waiver of Cost of Insurance - Waiver of Cost of Insurance is a rider that waives the deduction of the monthly cost of insurance and expense charges associated with a Universal Life type policy while the insured is totally disabled, usually after 6 months of continuous disability.
Which of the following is a true statement about the waiver of premium rider?
Which of the following is a true statement about the waiver of premium rider? The disability must be permanent and total. The return of premium rider does not actually return premiums, but in fact pays an additional amount of death.
Which of the following is a benefit of the owner waiver of deduction rider?
Waiver of Monthly Deductions RiderOption
The Waiver of Monthly Deductions rider pays all monthly deductions while the insured person is disabled, after a six-month waiting period. It doesn't pay the full premium, just the monthly deductions, and it won't add to cash value.
Which of the following is true about the premium on the children's rider in a life insurance policy?
Which of the following is true about the premium on the children's rider in a life insurance policy? It remains the same no matter how many children are added to the policy: it is based on an average number of children.