extended death benefit

[MortalityMan]

page 9 of the group life study note (102) describes the extended death benefit as:

"the death benefit will be paid if an insured dies within a specified time interval from their date of disability"

i guess this is assuming that the waiver of premium benefit doesn't exist? because if the waiver of premium exists, wouldnt the death benefit be paid as long as premium is considered 'paid/waived'?

[actexp]

page 9 of the group life study note (102) describes the extended death benefit as:

"the death benefit will be paid if an insured dies within a specified time interval from their date of disability"

i guess this is assuming that the waiver of premium benefit doesn't exist? because if the waiver of premium exists, wouldnt the death benefit be paid as long as premium is considered 'paid/waived'?

extended death benefit is in lieu of premium waiver benefit. usually period of time is one or two years, typically one.

[Julietn528]

I think Waiver of Premium, only waives the premium while the person is disabled. That means that if they are no longer disabled they will have to go back to paying premiums.

I took extended death benefit to mean that you were disabled. And if you died after your benefit period expired in the "extension period" then you would receive a death benefit.

[almostASA]

Is it correct to think of the extended death benefit provision as a limited version of the waiver of premium provision?

With the extended death benefit, premiums are not required during the extension period (1 or 2 yrs, in which the person remains disabled), and the death benefit is paid if the person dies inside the extension period. With the waiver of premium, premiums are not required while the person remains disabled (which I think of as a longer "extension period"), and the death benefit is paid whenever the person dies, or if the person dies before a certain age.

So I can see how either one or the other would be offered, with the extended death benefit being less costly.