CCW Global can provide comprehensive Hong Kong life insurance plans which include Premium Waiver Benefit riders – ensuring that even if you are injured and unable to work, meaning that you cannot continue to make premium payments, your life insurance plan would remain in force.
A Waiver of Premium, or WP, Benefit Rider is a type of Life Insurance Disability Benefit under which the insurer will waive, or forego, its right to premiums which would have normally been payable in the event that the policyholder is totally disabled.
It is important to note that the policy is not suspended whilst premiums are waived; the coverage will remain in force and benefits will continue to be added to the plan. In essence the insurance company is paying the premiums for the disabled individual.
A Premium Waiver Benefit Rider can be included on almost all Hong Kong Life Insurance plans.
There are normally a number of considerations which should be looked at in relation to Premium Waiver Riders on Hong Kong Life Insurance plans.
Premium Waiver Riders are normally attached to a waiting period. This is a specific length of time after the policyholder is disabled before the premiums are waived – the insurer in this case will wait before waiving the policy premium.
Whilst this may seem unfair for a disabled individual who is not earning a salary to pay the cost of their coverage for even a short time in common practice many insurance companies will refund any premiums paid in the event that disablement extends beyond the waiting period.
The waiting period of a Premium Waiver Rider is different than that found with Hong Kong Health Insurance plans.
It is normal practice for premiums to be waived only if the insured individual is of a certain age – usually between 15 and 65 years old. As such, it is important to check your policy to ensure that you are able to receive the benefit of such coverage.
In many cases the waiver of premium will occur on a monthly basis, even if the policy is being paid on an annual basis. This is due to a commonly used clause which switches the premium payment to monthly in the event of the policyholder being permanently disabled to ensure an equitable amount of payment being waived in the event that the disablement occurs on a short term basis.
If you would like to receive a quote for a life insurance plan in Hong Kong which includes a premium waiver benefit, simply complete the short form at the top of this page and select Life Insurance from the menu. Once you have submitted your request a CCW Global Insurance broker will contact you to further discuss your coverage requirements.