What a great product! Your insurance company is offering you a rider to protect you against sudden loss of income. Known as the Waiver of Premium rider, this clause comes into effect if you become disabled and can no longer work. The insurance company will waive your future premiums, though usually only after a waiting period (sometimes up to 90 days). You will not pay any more premiums on your insurance policy until you are able to work again. Considering how cheap the rider itself is, this sounds like a great idea!

Or does it? To determine that, you must consider the full financial impact of both the rider and the situation against which it is meant to safeguard you.

So, suppose you have become disabled, and no longer able to bring in an income. It's true, your insurance premiums aren't a concern anymore, but what about your rent or mortgage? Your car payments? Your medical bills, if professional care is required? None of these expenses are addressed by the Waiver of Premium rider. The added protection you have purchased may prove useful to your family after your death, but the protection the rider offers you while you are alive is far from sufficient.

To protect yourself financial stresses caused by a disability you should consider purchasing a separate disability insurance policy. Designed to replace your income should you be unable to continue working, a good disability insurance policy will allow you to continue meeting your financial obligations, premium payments included. But if you're paying for a full disability insurance policy, do you still need the waiver of premium?

If you need more information on disability insurance and how it would apply to your specific situation, click here! Our expert insurance agents will be happy to assist you. Our quotes are zero-obligation and free.