Life Insurance Policy Provisions, Options, and Riders
What does a waiver of cost of insurance rider cover on a universal life policy during total disability?
Answer and explanation
Answer: D. On a flexible premium policy there is no fixed premium to waive, so the rider takes over the monthly cost of insurance and expense deductions, leaving the account value intact. It does not fund the whole planned premium or affect crediting and surrender charges.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, waiver of cost of insurance
More life insurance policy provisions, options, and riders questions
- How does a partial withdrawal differ from a policy loan on a universal life policy?
- How does a survivorship clause in a common disaster provision operate?
- How does an automatic premium loan come to apply to a policy?
- How does the interest only settlement option work?
- How does the reduction of premium dividend option work?
- How does waiver of cost of insurance differ in effect from waiver of premium on a fixed whole life policy?
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