Question

All of these statements about the Waiver of Premium provision are correct EXCEPT

A.A waiting period must pass before becoming eligible for benefits
B.Waiver of Premium is available on both permanent and term insurance policies
C.Insured must be eligible for Social Security disability for claim to be accepted
D.Insured must be totally disabled to qualify

Answer 1

The incorrect statement is that the insured must be eligible for Social Security disability for a Waiver of Premium claim to be accepted. Waiver of Premium conditions vary by policy, not by Social Security eligibility.

Step-by-step explanation:

The statement about the Waiver of Premium provision that is incorrect is C.Insured must be eligible for Social Security disability for a claim to be accepted. The Waiver of Premium provision allows policyholders to forgo paying premiums if they are totally disabled, but eligibility is generally based on the insurance policy's definitions of disability, not on Social Security criteria.

A waiting period is standard before benefits become available, waiver benefits are indeed available on both permanent and term policies, and total disability is often a precondition for claiming these benefits. Each insurance policy has its definitions and conditions. However, medical underwriting and various other criteria typically dictate the qualifying parameters, rather than the receipt of Social Security disability benefits.