Disability Waivers

Policies providing coverage for loss of income and reimbursement of office overhead expenses commonly contain provisions waiving the payment of premiums in the event of disability.  Once initial eligibility has been established, it is not necessary to continue paying premiums on these policies to maintain coverage and collect benefits.

Unfortunately, people who cannot work due to disability have other expenses.  They face the risk of losing expensive life insurance coverage or defaulting on personal mortgages and loans due to loss of income. 

The insurance market provides a variety of products to address these risks.  In the case of  life insurance, one can purchase a rider that waives the payment of premiums in the event of disability.  There are also several carriers who sell insurance covering the cost of monthly payments on mortgages and loans following the onset of disability.

Professionals and other individual who purchase disability income and office overhead expense policies should carefully consider the need for separate coverage for these other expenses.  It is surprisingly affordable and, if the need arises, can provide critical financial protection that helps preserve important assets and one’s pre-disability lifestyle.

As with other types of disability insurance, there are important differences between waiver policies in terms of their substantive provisions, their cost, and other significant factors.  Frank offers consulting services to assist in selecting appropriate insurance, and he regularly handles claims under these policies.