Do You Need a Disability Waiver for Your Life Insurance?

Insurance Blog

Getting a life-insurance policy is not as simple as getting a standard policy and not needing to decide on much. There are many factors of your life-insurance policy that must be considered, one of which is the disability waiver. By understanding what it does, you can decide if you should get it for your life-insurance policy.

What Does the Disability Waiver Do?

When you have a life-insurance policy, you'll need to pay the policy's premium in order to keep your insurance. As long as you are healthy when signing up for your life-insurance policy, you will still have life insurance even after you get sick or develop a major health problem.

If a new health problem makes you incapable of working to help pay off those premiums, you will not be able to keep your life-insurance policy and will lose your benefits. Getting life insurance again will end up being much more expensive now that you have a major health problem, and this may make life insurance not affordable.

A disability waiver will pay your premiums for you if you are disabled with either a permanent or temporary disability. You'll be able to maintain your current policy without fear of losing it because of a lack of employment.

What Are the Differences in Disability Waivers?

Not all disability waivers are created equal; different rules are defined by each insurance company. For instance, there may be a waiting period until you are considered disabled by your insurance company, so you might have to continue paying premiums until that status is reached. You may qualify to get retroactive payments for the time you were disabled and making payments, but you would need to keep up with payments until then.

Why Do You Need a Disability Waiver?

When you are young and healthy, your initial thoughts could be that you do not need to get the disability waiver. Unfortunately, life is full of surprises. While you are perfectly healthy now, a serious injury from an accident could cause you to lose your job.

You'll also need to consider any family health problems before turning down the disability waiver. You could be likely to develop a disease, organ problem, or other kind of health issue later on in your life. While a disability waiver will cost you money, it provides peace of mind in case you cannot pay your life-insurance premiums down the road.

Consult companies such as Amberg Insurance Center Inc for information about particular life-insurance policies. 

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10 August 2016