Keeping your coverage if you become disabled
No one wants to think it will happen, but you can cover yourself with a Disability Waiver of Premium Rider
You buy life insurance to protect what is important to you. For example, if you own a business, you may want to leave to leave it to the next generation, or at least have your family be able to maintain their standard of living if you die. But, what happens if you are unable to pay your premiums as a result of a disability? The Disability Waiver of Premium rider may be your answer.
What the Rider Can Do For You
The Disability Waiver of Premium rider, when attached to an eligible life insurance policy, helps you continue your policy’s coverage during disability. It does so by waiving the premiums on a policy when the insured has suffered from a debilitating disability that has lasted for at least six months.
Once proof of disability has been furnished, the rider takes effect. Provided the insured is older than five years of age (and as long as the rider is in effect), all premiums due during the time the insured is disabled are waived. In fact, though the disability must continue for six months before the waiver is invoked, because it is retroactive, we will refund premiums paid from the time of the onset of the disability up to six months.
The rider is available at additional cost for certain policies. It also works diffferently, depending on the age when the insured becomes disabled and type of policy owned.
Did You Know?
For New York Life Whole Life policies, if disability begins at age 60 and before the policy anniversary and it does not end until after age 65 and after the policy anniversary, then we will — without asking for further proof of disability — waive all premiums until age 100.
For New York Life term policies issued since 1996, if disability begins at age 60 and before the policy anniversary and it does not end until after age 65 and after the policy anniversary, then we will — without asking for further proof of disability — waive all premiums until age 80. At that point, New York Life will replace the term policy with a whole life policy of an equal face amount to the existing term policy with premiums waived for life.
To discuss your life insurance needs with a local New York Life agent, click on the 'Talk to Us' button and we’ll help find an agent near you.