The Texas Department of Insurance defines Waiver of Premium as Disability waiver of premium. This is a “rider” that covers the premium if you meet the policy’s definition of disabled. This rider is usually only available to people younger than 60.
With One America companies, the waiver of premium rider is an “own-occ” defined rider that is for the first 5 years of your policy. “Own-Occ” is your OWN OCCUPATION. If you cannot work as your specific job description and duties then you are considered disabled. For example, if a specialist physician cannot perform defined tasks and duties but can perform as a general physician this policy holder is defined as completely and totally disabled. After the 5 year window a generally defined disability triggers the waiver of premium rider. The insured must be completely and totally disabled to perform any paid endeavor.
More on triggering and specifics of underwriting:
This rider waives your premium if you become disabled — allowing you to keep their life insurance protection. WPD benefits do not apply to premiums paid for the Accelerator or Blend Accelerator paid-up additions and Same Insured Term riders (APUAR, BPUAR & SITR) on Whole Life Policies. Clients can protect the paid-up additions riders with the Credit of Paid-Up Additions for Disability Rider (CPUADR).
Coverage is to age 70 for qualifying disabilities that occur between ages 60–65. For disabilities that occur prior to age 60, the insurance company will waive premiums for as long as the primary insured remains disabled.
Waiver of Conversion Option
The Waiver Conversion Option is an additional option with WPD that allows clients with an OneAmerica® Premier Term policy or Same Insured Term Rider (SITR) to convert to permanent coverage while on disability and have the new permanent policy’s premium waived. This can allow the client to build cash values with no out-of-pocket premiums.