Q: Does Dave Recommend Waiver of Premium Riders?
Dave Ramsey does not recommend purchasing “waiver of premium” riders. As a percentage of cost, the rider is an over priced add-on rider that makes the insurance company a lot of money and rarely benefits the client. A waiver of premium rider states that you do not have to pay the premium if you become disabled. However, the definition of disability is so strict, that very few people actually qualify. In addition, term life insurance rates are typically very low. They can be afforded through your emergency fund if you have short term income issues, and then through your long term disability insurance if loss of income due to disability continues for a longer period..