The Money Advantage Podcast

The Money Advantage Podcast

Waiver of Premium: How to Get a Bulletproof Life Insurance Policy

February 17, 2020

Waiver of premium is like having insurance on your insurance. So, if you are a wealth creator who wants to make sure your life insurance will be the cornerstone of your wealth and take care of your family no matter what, here are 3 quick questions to ask to make sure you get a bulletproof policy.

But first ...

Where Does Waiver of Premium fit into the Cash Flow System?

The waiver of premium rider is an add-on to a life insurance policy, an integral part of your financial life. But life insurance in itself is just one small part of the bigger journey to time and money freedom.

That’s why we’ve developed the 3-step Business Owner’s Cash Flow System. It's your roadmap to go from just surviving, to a life of significance, purpose, and financial freedom. 

The first stage is the foundation.  You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable. 

Then, you protect your money with insurance and legal protection and Privatized Banking. 

Finally, you put your money to work, increasing your income with cash-flowing assets.

Waiver of premium is a life insurance upgrade feature in the protection component of your cash flow system.

Waiver of Premium Question #1: How Would My Life Insurance Be Impacted If I Became Disabled?

This simple question means you must understand a key idea. What if disability prevented you from continuing working in your current profession, at your current level of income? And what if that limited your finances so that you couldn't continue to pay premiums for a life insurance policy? And what if you had wanted that policy to be your access to cash and the legacy for your family?

Financial Pressure

You need to know the answer to this question because a life-altering event that causes a disability could not only cause physical challenges, but it could heap on financial strain in compounding ways as well.

If disability were due to an illness or injury, there could be extended medical expenses and recovery time.  You may want or need your spouse close to assist you.  Neither of you may be able to work during this time.

The reason this matters is that if you lose the ability to keep working the way you always have, your primary source of income could become tenuous, or be lost altogether. And that means life would force difficult decisions about what expenses you have to cut out. With medical bills and basic needs requiring top priority, there may not be enough to pay life insurance premiums.

Impacts on Your Life Insurance Policy

With a term policy, that could mean having to walk away from a policy. In this case, you'd give up the death benefit AND the dollars you've paid in premium up to this point.

With a whole life policy, that could mean canceling your policy or choosing another funding method.