Waiver of Premium Rider
Definition - What does Waiver of Premium Rider mean?
A waiver of premium rider is a clause in an insurance policy that waives the premium payment for a specified period in the event the policyholder becomes disabled or critically ill. It allows a policyholder to benefit from coverage even while they are unable to work and potentially having difficulty in paying the premium.
Insuranceopedia explains Waiver of Premium Rider
Some insurance policies may package this rider with the main policy, while others charge an upfront fee. A waiver of premium rider is typically available with life insurance and requires a total disability as defined in the policy that lasts for a specified continuous period. Some insurers may place other requirements for it to take effect, such as the policyholder being below a certain age.