Published: | Updated: October 15, 2016

Table of Contents

Definition - What does Waiver mean?

A waiver refers to an intentional and voluntary act of relinquishing or abandoning a right, privilege, claim, or legal benefit, often in a written statement. In terms of insurance, a waiver has many applications, such as provisions waiving coinsurance in property insurance or premiums in life insurance.

Insuranceopedia explains Waiver

In essence, a waiver functions as a way to remove a real or potential liability for one party in the agreement. Often, waivers in insurance contracts may entail specific conditions or stipulations for the waiver to go into effect. For example, a life insurance policy with a waiver of premium protects the insured from the possibility of losing coverage as a result of the inability to pay due to a serious illness or disability. However, for the premium to be waived, the policyholder and the situation must meet certain conditions, such as the disability lasting 6 months or more and the policyholder being of a certain age and health at the time of the agreement, for instance.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this:

Connect with us

Email Newsletter

Join thousands receiving the latest content and insights on the insurance industry.