Premium Waiver (Premium Cover)
Eight Suppliers - Multiple Options
This is a very inexpensive option that can prevent a very expensive mistake.
Today, with Doctors and medicine getting better and better at keeping us alive, if we suffer a major trauma event, we tend to survive the event, rather than die from it. Don't get me wrong, some do die, but the chances of surviving a trauma event are increasing day by day, however, the event may put you in a position where you can't work and therefore get financially stretched and are unable to keep your insurance policy "alive".
A very simple and inexpensive solution is to apply a "waiver of Premium" option over all benefits (if available - depending on supplier). This way, if you are off work due to an accident or illness, the premium will be paid for by the supplier, after your selected wait period (4/8/13/26 etc weeks), until you go back to work again (typically prior to age 65). Some suppliers will also pay the premium(s) applicable to other lives under the same policy.
We recommend this benefit even if clients only want death cover/life Insurance. Without this option, if you suffered a major trauma event, could not work, get financially stressed and your insurance policy lapses, when/if you eventually die, you may have left you spouse/ family in a position where they are exposed to major debts (mortgages etc). (Kerry) I personally know of parents of one of our children where this happened and the wife was left destitute and now has to have her children help her with her accommodation.
Things to be aware of with Premium cover.
- There is a maximum entry age as this is like a minor income protection benefit
- Is occupationally rated similar to income covers
- Typically expires at age 65
- Depending on supplier the benefit may only apply to the benefits of the affected life assured although some companies apply the waiver over all lives under the policy.
- You will need to complete part of the occupation/income section of an application form.
"I was never told about premium cover by my previous broker and I have since found out it was so inexpensive. Now that I can't work after my stroke, I can't get the cover and we have had to cancel our insurance, as we can't afford the premiums. I worry that my wife will not be able pay the mortgage if I die! (this was a comment from a prospective client, when we went to review his cover which was put in place via another broker)
Please tell me more about Premium Cover
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