Disability Benefits 殘疾保險利益

Disability Waiver of Premium (known as a WP Benefit Rider) 殘疾豁免保費（即豁免保費附約）

A WP Benefit Rider is attached to a basic life policy. If the insured meets the rider's definition of disability, the insurer waives premiums falling due during the disability. The policyholder receives no cash, but the policy stays in force, the sum assured is not reduced because of the waiver, and policy values and any dividends generally continue to build as if the premiums had been paid.

A claim normally needs three things: the disability meets the rider's definition, it begins before an age stated in the rider (commonly 60 or 65), and it lasts until the end of the waiting period (commonly six months). Premiums due during the waiting period must still be paid so that the policy does not lapse, and they are usually refunded once the claim is accepted.

The definition of disability depends on the policy wording. A common approach is that, for an initial period such as two years, the insured is disabled if unable to do their own occupation. After that, the insured must be unable to do any occupation for which they are reasonably suited by education, training or experience. Some policies also have presumptive disability: loss of sight in both eyes or loss of two limbs, for example, counts as total disability even if the insured can still work. The insurer may ask for proof from time to time that the disability continues.

When the insured recovers, the waiver stops and the policyholder must resume paying premiums from the next due date, but does not have to repay the premiums already waived. Common exclusions include self-inflicted injury and war. The rider cannot exist without the basic policy: if the basic policy ends, the rider ends with it.

Disability Income 殘疾收入

Disability income pays a regular amount, usually monthly, to replace the earnings lost when the insured cannot work because of injury or illness. It may be a rider to a life policy or a stand-alone policy. The monthly amount may be a fixed sum or a percentage of the sum assured. Unlike a WP Benefit Rider, it pays cash rather than simply relieving the policyholder of premiums.

Payments normally start only after a waiting period. Other terms being equal, a longer waiting period means a lower premium because the insurer does not bear claims for short disabilities. The benefit period is also limited, either to a fixed term or to a stated age, and payments generally stop earlier if the insured recovers or dies. Some policies include waiver of premium as well.

Insurers usually limit disability income to a proportion of the insured's earnings. If the benefit came close to or exceeded earnings from work, the insured would have little incentive to return to work, and moral hazard would increase. Underwriters therefore consider the insured's income and adjust the terms to reflect the risk of their occupation.