Waiver of premium

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Waiver of premium

A provision in an insurance policy that allows payment of insurance premiums to be permanently or temporarily stopped in the event the policyholder becomes incapacitated.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Waiver of Premium

An agreement between an insurance company and a policyholder allowing the policyholder not to pay premiums if he/she is seriously injured, ill or disabled. In general, the policyholder must pay a one-time fee for the insurer to include a waiver of premium clause in a policy.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Waiver of premium.

If you have a waiver of premium provision in your long-term care or disability insurance policy, you may qualify to stop paying premiums once you've begun collecting benefits.

A waiver of premium provision increases the cost of your insurance, but means that you won't be left without coverage if you are no longer able to pay the premiums.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
The addition of a waiver of premium rider brings an additional element of protection to a life insurance policy.
Preferably, a term life insurance policy's waiver of premium rider and conversion privilege will work simultaneously.
Answer--The waiver of premium rider, which is a common rider to most permanent or ordinary whole life policies, provides that premiums are waived if the insured becomes totally and permanently disabled.
Some life insurance riders that have become common include: level term riders; accidental death benefit riders; waiver of premium riders; and guaranteed insurability riders.
Disability Waiver of Premium riders generally waive the premiums due on a whole life insurance policy if an individual is disabled and unable to work.
"Our VUL products, which now boast asset allocation, guaranteed accumulation and waiver of premium riders, also are enjoying greater growth in percentage terms, though off a smaller base."