Description: The Product Development Section has recently sponsored research on waiver of premium and waiver of charges riders. Waiver riders are commonly offered as optional benefits or included automatically on individual life insurance policies as an integrated benefit. In the event of disability, a waiver rider may waive future life insurance premium due or contribute an amount to a flexible account, such as the average premium paid over the past year or the cost of insurance charges. Despite the prevalence of these riders, the current valuation standard is still the 1952 Society of Actuaries (SOA) Disability Table.

Description: The presenters will dig into the little rider that most actuaries don't spend much time thinking about. A regulator, a direct writer and a consultant will discuss their thoughts on this rider and point out areas where actuaries should focus before deeming it insignificant. Topics will include the current study underway to update the industry experience study (most recently done in 1952), underwriting considerations, interactions with other riders, benefit designs, unique issues on UL policies, tax implications and reserving considerations