Investment in Risk Management solutions solves many critical areas for the business owner. Previously we discussed how Life Insurance as a Risk Management Program solves two important factors for the business owner, passing on at the wrong time and supplemental retirement income. There is a third factor that many not only overlook but also are not aware of. This is called the Waiver of Premium.
Let me relate a true story. Husband and wife met with me recently to consider purchasing Life Insurance as they were expecting their first child this summer. After we selected the type of insurance and company (it’s always good to compare two or three companies), I listed the benefits in a Long Term Insurance program. They liked and understood all features. I then added, in full disclosure, that the annual investment included a WAIVER OF PREMIUM rider. I explained that in the event of a disability lasting longer than 30 days, the company would waive the requirement of paying annual premium. The both looked at each other, smiled and then looked to me and said , “I like that added safety net.”
Its true. By adding a few extra dollars each year, you can insure that your Life Insurance program remains in force. Not at all impressed? Let me tell you another story of a client who worked at a local grocery store chain. Tony M., a client in his late 40’s who had Life Insurance with me, unfortunately suffered a heart attack and had a quadruple by-pass surgery. Thankfully he recovered and is back on his feet BUT WAS OUT OF WORK for over seven months. This understandably caused financial hardships for their family but did it affect their Life Insurance plan? NO WAY FOR THEY HAD THE WAIVER OF PREMIUM FEATURE IN THEIR LIFE INSURANCE PLAN.
The moral of these stories is that if you are investigating Life Insurance for your Business or for your personal life, consider adding the Waiver of Premium. Life Happens and it’s always good to plan for the unknown in as many ways humanly possible.
Best of luck with your investments. Sincerely, Bob