Review of Waiver of Premium Riders

"I would surprised if the waiver is not paid. I can not think of any waiver claim that has been declined."

We'll see, you guys will be the first to know. The question really is how hard they stick with "any occupation".

I had written a large response, but computer problems blanked it out of course...

But the question really is has technology made "any occupation" an unanswerable question where going on claim would happen?

DHK's example is more appropriate for the times. My policies are close to 30 years old and I have put clients with back injuries on Waiver of Premium before (years ago),but that was before all the stuff we have now existed.

You hope they do the right thing, but you never know. I am not permanently disabled as I hope to walk soon. In July I get fitted for a new foot and hope to be walking at least a short bit and driving by end of August.

This has been an interesting and trying experience at the same time. Imagine having to ask for help doing the most simple things in your life. Having to wait for help rather than simply walk over and get what you want, no matter how trivial it is at the moment. It's important to you.

I always wanted to have my wife take a shower with me and for most of our 32 years she declined. Now she has to be there to "watch" me and help me in and out of the shower. And there's not a damn bit of it that is sexy, let me tell you..

Cheers all.
 
"I would surprised if the waiver is not paid. I can not think of any waiver claim that has been declined."

We'll see, you guys will be the first to know. The question really is how hard they stick with "any occupation".

I had written a large response, but computer problems blanked it out of course...

But the question really is has technology made "any occupation" an unanswerable question where going on claim would happen?

DHK's example is more appropriate for the times. My policies are close to 30 years old and I have put clients with back injuries on Waiver of Premium before (years ago),but that was before all the stuff we have now existed.

You hope they do the right thing, but you never know. I am not permanently disabled as I hope to walk soon. In July I get fitted for a new foot and hope to be walking at least a short bit and driving by end of August.

This has been an interesting and trying experience at the same time. Imagine having to ask for help doing the most simple things in your life. Having to wait for help rather than simply walk over and get what you want, no matter how trivial it is at the moment. It's important to you.

I always wanted to have my wife take a shower with me and for most of our 32 years she declined. Now she has to be there to "watch" me and help me in and out of the shower. And there's not a damn bit of it that is sexy, let me tell you..

Cheers all.

I have people on waiver that are in much better condition. I can remember the last time any came off waiver. Last week I got copies the "if you go back to work" letters on a 65 year old and 50 year old. Both have been on WP for about 10 years. Back issues and fibromiagia(sp)

I really believe you will have no issues.

Really do hope you have a steady recovery.
 
I was a NYL agent for a couple months and I still remember one of the managing partners saying that something like 80% of waiver of premium claims were paid/accepted by NYL.

It would be a shame if it was just a number they made up to get agents to always insist on the rider.

I used to always sell it as a necessary rider but more and more I just offer it as an option. Esp when its cheap term policies.
 
From an academic standpoint, if a person has adequate DI coverage then they should not need the WP rider. If they can replace 70%-90% of their pre-tax income through DI policies, that should be enough to pay all of the bills.

The caveat is that there are often extra expenses that go along with being disabled. So it really just depends on the situation. Then there is the fact that the majority of people do not have adequate DI coverage....
 
WP rider on permanent life insurance plans allows continuous savings regardless of other bills.

Keep in mind that health costs often increase once one is disabled.


Then there's the Kalifornia issue where it seems that disability coverage is only available up to 40% of income before it is coordinated with State & SSI programs.
 
I truly do not recall a WP claim being denied. I am not sure that I have ever had a permanently disabled client put back on premium payments due to the "any job" clause. I have had term plans on waiver converted and continue on waiver also term plans that continue after the guarantee level period. Note that these were true term not TULs.

My prior examples were United Heritage and Ohio National

What are your experiences on WP?

This could be a helpful thread.
 
WP rider on permanent life insurance plans allows continuous savings regardless of other bills.

Only to a point. The majority of policies do not cover a fully overfunded premium contribution, especially for IUL. And the ones that do for IUL are usually not great products.

Although for WL, Guardian has a normal WP plus a PUA WP that you can add on.
 
Only to a point. The majority of policies do not cover a fully overfunded premium contribution, especially for IUL. And the ones that do for IUL are usually not great products.

Although for WL, Guardian has a normal WP plus a PUA WP that you can add on.

Not to mention DI for retirement savings.
 
I think this is a really good discussion. I pulled my current (ONL) and my previous (NYL) policies to look at the difference. I feel like they are pretty open ended compared to a good DI policy. Here they are for reference.

ONL
"You are Disabled (or have a Disability) if you cannot work at all due to Injury or Sickness. For the first five years that premiums are waived, this will mean that you cannot work at your normal job. (The normal job of a full-time student is to attend class.) After five years, this will mean that you cannot work at any job for which you are qualified by education, training and experience.
Even if you can work, you will be Disabled if you lose your sight, speech, or hearing; or if you lose the use of both hands, both feet, or one hand and one foot. Your loss must be total, with no chance for you to recover."


NYL
"Total Disability means that, during the first two years of disability, the Insured cannot do any of the essential acts and duties of his or her job because of disease or bodily injury. After the first two years of total disability, Total Disability means that the insured, because of disease or bodily injury, cannot do any of the essential acts and duties of his or her job, or any other job for which he or she is suited based on schooling, training, or experience. If the insured can do some but not all of these acts and duties, disability is not total and premiums will not be waived.

If the Insured is a minor and is required by law to attend school, total disability means that because of disease or bodily injury, he or she is not able to attend school.

Total disability also means the Insured's total loss, starting while this rider is in effect, of the sight of both eyes or the use of both hands, both feet, or one hand and one foot"



I know there is probably a good chance that these definitions vary some from state to state. For what it is worth, these are both on 20 year terms, and the ONL rider, as a percentage, costs a good bit more than the NYL. The ONL policy is less expensive, but the cost to add the rider is higher.
 
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