MetLife GLT Life Insurance Product Disability Waiver of Premium Riders
The MetLife GLT 10, GLT 15 GLT 20 and GLT 30 term life insurance products offer a choice of disability waiver of premium riders named Non-Convertible Disability Waiver of Premium (DW) and Convertible Disability Waiver of Premium (CDW).
What is a disability waiver of premium rider? It is designed to protect life insurance customers from an unexpected disability that could make the continuation of premium payments either difficult or impossible, potentially jeopardizing the life insurance policy. The waiver of premium rider would waive premium payments that fall due, to eligible insured’s that meet the guidelines and maintain the insured’s coverage. MetLife charges a higher premium to include the disability waiver of premium riders. We will discuss the features of both the DW and CDW in detail, however, the riders are optional and insured’s cannot elect both disability waiver of premium riders.
Let’s discuss each of the life insurance riders starting with Non-Convertible Disability Waiver of Premium (DW). This rider waives all premiums on the base policy if the insured becomes totally disabled without interruption for at least six months. Note that the insured must be totally disabled for eligibility of this rider. If the disability starts before the policy anniversary, when the insured is age 60 and the disability continues without interruption to age 65, then all future premiums are waived. Whereas the GLT products are guaranteed renewable until age 95, future premiums would be waived until the policy end. If the disability starts on or after the policy anniversary when the insured is age 60, but before the age 65 policy anniversary, the premiums are waived for three years or to the age 65 policy anniversary, whichever is later. The DW has a three-year “own occupation” definition of disability and an “any occupation for which reasonably fitted” definition after three years.The issue age for the DW rider is 18-59.
Under the Convertible Disability Waiver of Premium (CDW) rider, when a GLT policy is converted to a new permanent policy, it can include a DW rider without evidence of insurability. This is only if a DW rider is in-force on the term policy at that time, and that a DW rider is available on the new policy for the attained age and face amount being converted. If premiums on the policy are being waived by CDW at the time of conversion, or have been waived by CDW within the last two years prior to the conversion, the new policy must be a whole life plan issued by MetLife Investors USA Insurance Company, Investors USA Insurance Company, First MetLife Investors Insurance Company or a designated affiliate. The issue age for the CDW rider is 18-59.
As you can see, there are many options available to you when it comes to choosing a life insurance policy and associated riders.
About the author: Ken Buccico holds a LUTC designation and has been in the life insurance business for 39 years. His wealth of experience empowers clients to make best possible decision regarding a life insurance policy. To explore the best life insurance option, contact Ken at 1-800-651-1953 or KBuccico@Pivot.com.