Waiver Of Premium For Disability

What Does Waiver Of Premium For Disability Mean?

A waiver of premium for disability is a provision in an insurance policy that exempts the insured from paying premiums while retaining coverage if they become disabled, typically for a specified period.

Insuranceopedia Explains Waiver Of Premium For Disability

A waiver of premium for disability provision can be added to an insurance contract for an additional cost. It is commonly included in health, life, and disability insurance policies. This provision can be crucial in the long run, as it may allow the insured to maintain their policy despite being unable to pay premiums due to a disability. However, the definition of disability and the length of the premium waiver vary between policies and are determined by the insurer.

Because the waiver only kicks in once the insurer’s specific disability criteria are met, some policyholders also carry standalone disability insurance to cover lost income during the waiting period before the waiver applies. The cost of adding the rider, the waiting period, and the definition of total disability are three things worth comparing when looking at the best life insurance companies, since terms differ widely from one insurer to the next. For anyone weighing whether to pay extra for the rider at all, the trade-off between cost and protection is one of the factors covered in our guide to choosing a life insurance policy.