Tyler purchased a disability policy with a waiver of premium rider. He becomes disabled on May 1 and begins benefits on June 15. On which date are his premiums waived?

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Multiple Choice

Tyler purchased a disability policy with a waiver of premium rider. He becomes disabled on May 1 and begins benefits on June 15. On which date are his premiums waived?

Explanation:
A disability policy with a waiver of premium rider waives premiums while the insured is disabled. The trigger for the waiver is the date the insured is considered disabled, not when disability benefits start. In this case, disability begins on May 1, so the premiums are waived beginning May 1. The fact that benefits don’t start until June 15 reflects an elimination period before benefits payments, but it doesn’t shift the start of the premium waiver. So, premiums are waived on May 1.

A disability policy with a waiver of premium rider waives premiums while the insured is disabled. The trigger for the waiver is the date the insured is considered disabled, not when disability benefits start. In this case, disability begins on May 1, so the premiums are waived beginning May 1. The fact that benefits don’t start until June 15 reflects an elimination period before benefits payments, but it doesn’t shift the start of the premium waiver. So, premiums are waived on May 1.

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