Can I Get Refunded 7 Years Of Premiums On A Life Insurance Policy With A Total Disability Rider?
Posted October 2, 2009 – 4:24 pm in: term life insuranceI need to know if I can get reimbursed for the premiums I paid. I own the policy and didnt know it had a waiver of premiums rider due to total disability. The insured has been totally disabled due to a stroke since 2001 and has been on social security disability since that time.. Please help because I think American General is trying to give me the runaround. This is a term life insurance policy
Tags: Disability, Insurance, Life, Policy, Premiums, Refunded, Rider, Total, With, Years
4 Comments
I doubt it. There are time limits on claims; however, if you’re still disabled you could probably do it now. Plus you should be able to convert the policy to a cash value policy and start to build cash as well.
Likely, you cannot get a reimbursement of premiums paid. You have to invoke the clause. They don’t have to honor it retroactively.
A claim for disability waiver has to be submitted within a certain time frame. (As soon as possible after diagnosis) Check your policy provisions for your particular case.
Disability has to be diagnosed prior to age 60, and usually expires at the policy anniversary at age 60. Check your policy provisions.
Usually, the DWP (Disability Waiver of Premium) has a 6-month waiting period. Some policies have a 3-month waiting period.
The insurance company requires that, if the insured becomes totally disabled, he or she must notify the company in writing at the earliest possible date after disability is diagnosed. The company will usually accept back-dating of the claim payments to the insured, but no longer than 12 months.
It doesn’t matter that the policy is term, the DWP is the same.
On the declarations page of the policy, it will show the benefits of the policy, including the waiver of premium benefit. The policy was more than likely explained by the agent when he/she delivered the policy to you, unless you bought it online.
If the policy was purchased online, this is the reason I always recommend a local agent.
Sometimes people forget what they were told about the policy. That’s why it’s good to have a policy review at least once a year, to have the agent go over benefits of the policy, and to check with the insured to see if any life changes have ocurred, that would increase or decrease the need for more or less insurance.
Hope this helps.
Best wishes, and God bless
To me it sounds like you are the owner ( and possibly beneficiary ), and someone else is the insured. I could be wrong, but usually the Waiver of premium applies to that person who is paying the cost of the plan..You. And since you are not disabled, I doubt they will pay. American General is a pretty reputable company. Have you talked to the agent, or just customer service?