Waiver of premium or waiver of the cost of insurance is a clause that could be usually used in health and life insurance policies. Keep reading if you want to learn precisely what it is.
Waiver of cost of insurance is where, in case you have become disable or sick, commonly for a period of time bigger than six months, your insurance provider settles to pick up the premiums on your policy until you can be back to work.
To select a company that provides Waiver of Premium just use the comparison tool from Direct Auto Insurance website, and compare several companies’ quotes which allow you to select the best one for your insurance needs.
How Much Does the Typical Waiver of Premium Clause Cost?
As commonly happens with other things in this area, the waiver of cost of insurance could be calculated as a percentage risk based on the global risk of the policy. At the same time, the prices could vary from one policy to another, from one insurance provider to another, and, of course, from one insured person to another one.
Typically, you would pay about 2% of your entire policy for a waiver of cost of insurance clause. Yet, this could not be strictly accurate for all policies. Therefore, a piece of good advice for you is to consult your insurance agent or broker before taking out an insurance policy. He or she should determine what the costs of this clause for your particular case are.
Despite the Extra Premium, is a Waiver of Cost of Insurance a Good Option?
There could be many answers to this question. So, you should always consider your particular financial situation before selecting this choice. You should answer the following questions to yourself: What if I get seriously incapacitated? Will there be someone else legally responsible for it (i.e., someone you could sue to pay for your medical attention, treatment, premiums, etc.)? Would I be able to keep making payments on my insurance policy indeterminately?
In case your answers are “Yes”, then a waiver of the cost of insurance might seem like a useless option for you. Still, given the total sums, you might prefer not to have to pay them.
On the other hand, if your answers had been “No”, even if you should pay that extra money, a waiver of the cost of insurance is a wise option to consider. This kind of clause is the only thing that would guarantee you could maintain your policy benefits in case you find yourself seriously incapacitated for indefinitely time. Almost all insurance providers who offer a waiver of premium as a choice for you would keep paying the premiums during a time. This period might be until your contracted plan has ended or you have retired. Therefore, from your point of view, as the insured party, you are, indeed, paying a small further premium for guaranteed insurance payments. You would be doing this even when you could not make your payments anymore.