How it works
LIA describes waiver of premium as a feature that lets future premiums stop, with the policy carrying on, if the policy owner can't work because of an accident or injury. It lists disability waiver of premium among the common riders, and its disability benefit entry covers a waiver on total and permanent disability.
Any other trigger is the insurer's, product by product. What to find in the rider:
- the event that triggers it, and how disability is defined
- any waiting period before the premiums stop
- which premiums it covers: the base policy only, or the riders too
- when the waiver ends, such as on recovery or at a set age
It doesn't pay the client anything. It takes the premiums away, and the rider has its own premium on top of the base policy while it's being paid.
In the US, NAIC notes that long-term disability income policies usually include a waiver of premium, which stops premiums once the policyholder is disabled, until the disability ends.
Worked example, with made-up figures: a client pays S$250 a month for a whole life policy with a disability premium waiver. A stroke leaves her totally and permanently disabled, as the policy defines it. The premiums stop, and the policy stays in force as if she were still paying.
Where it shows up in your week
A waiver claim starts with a client telling you what happened. The CRM keeps your notes on each client's page, so what you wrote about their cover is there when the call comes.