Group life insurance provides affordable life insurance coverage for employees who may not purchase individual coverage. But what happens if employees can no longer work because of permanent disabilities? Are they at risk of losing their life insurance as well?
Fortunately, waiver of premium (WOP) riders offered with many carriers’ group life insurance products allow employees who become permanently disabled to continue their life insurance coverage without paying premiums. The waiver of premium process can be relatively simple or complex, depending on whether long-term disability and life coverage are provided by the same carrier or multiple carriers. Read our recent Inside Track paper for some of the questions you should consider when evaluating waiver of premium options for employees.
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