Waiver Of Restoration Premium
Updated: 09 June 2023
What Does Waiver Of Restoration Premium Mean?
A waiver of restoration premium is a provision in an insurance policy that allows the policyholder who receives benefits from a claim to continue with the same level of coverage prior to the payout. Without a waiver of restoration premium, the policyholder may be able to pay an additional premium to enjoy the same level of coverage.
Insuranceopedia Explains Waiver Of Restoration Premium
Conversely, a policy might no longer offer coverage once the claim payouts have reached its limits. Some policies detail a maximum for both individual events and over the policy's term. In case restoring coverage is not possible, policyholders could purchase secondary or supplemental policies to reduce the risk of a lapse or lack of coverage if the primary policy reaches its limits.
Related Definitions
Related Terms
Related Articles
Life Insurance Companies: 67 of the Biggest Carriers in the U.S.
Commercial Insurance Premiums: How Are They Calculated?
How to Pick the Right Insurance Company
What Influences Life Insurance Premiums?
Insurance Self-Service Portal: The Future of Customer Experience
Blockchain’s Impact on Transforming the Insurance Landscape
Related Reading
Revealing the Most And Least Popular U.S. Insurance Companies
What Students Need to Know About Insurance Coverage During Internships
A Roadmap for Students Interested in the Insurance Industry
Strong Identity Verification in the Insurance Sector
How to Avoid Online Insurance Scams
How to Get Into the Insurance Industry With a Finance Degree