Waiver of Premium for Disability
Definition - What does Waiver of Premium for Disability mean?
A waiver of premium for disability is a provision in an insurance policy stating that the insured does not need to pay the usual premium to enjoy coverage for a specified period if they become disabled.
Insuranceopedia explains Waiver of Premium for Disability
A waiver of premium for disability provision can be added at an additional cost to the insurance contract. Such a provision is usually found to be in health, life, and disability insurance insurance policies. This provision, in the long-run, could be the difference between the insurer keeping the policy or losing it due to a disability. However, the definition of the disability and the duration of the premium fee waiver vary across policies and depend on the insurer.