Waiver of premium

Also found in: Dictionary, Medical, Acronyms, Encyclopedia.
Related to Waiver of premium: Accelerated death benefit

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 right to include the waiver of premium rider in the converted policy can be an important feature, particularly if the conversion to a policy with a waiver of premium rider can be made even if the insured is already disabled.
My policy states that I have waiver of premium. What is this and when will it start?
Waiver of premium. This feature pays the premium of a policy if a serious illness or injury causes the policyholder to become disabled.
face amount Issue age range 25-55 (35-55 in WA) Built-in riders * Waiver of premium payments for one year in the case of unemployment * In case of disability, payments waived until disability ends or the policyholder turns 65 Premium payment At the end of the level period (age 65), period premiums increase annually for 20 yrs.; annually increasing premiums are guaranteed.
After all, when was the last time your company sold a group life plan without waiver of premium? Not only that, but the IRS already has issued a number of private letter rulings allowing employers to offer a disability income feature inside a 401(k) plan.
With waiver of premium, it is self- completing if totally disabled.
If disability occurs, look at the life policy for waiver of premium, the disability policy for the benefit elimination period, the definition of disability, and the benefit period.
Our advice is to join your employer's pension scheme if one is available and, if not, select a current modern flexible contract with a competitive charging structure and waiver of premium benefit, then review your pension when the new arrangements are finalised as the government intends that it should be possible to convert to a stakeholder scheme if it is in your best interest to do so.
More may be added if they can meet Torquil Clark's tough criteria, including investment performance, financial strength, charging structure and waiver of premium terms.
The disadvantage with purely lump sum payments is that you generally can't include Waiver of Premium which protects your future pension against long term illness or injury.
For example, a client with both a traditional LTCI policy and a life policy with care benefits would want to use the traditional LTCI coverage first to activate that policy's waiver of premium feature while preserving the life policy's death benefit.