Waiver of Premium

Definition

  • If an insured individual finds themselves incapacitated or unable to work due to accident or injury, some insurance policies include a provision where the insurance company can temporarily cease the collection of premiums for as long as the insured person's disability remains in effect while still keeping the policy in force and providing benefits to the insured. Also known as a "waiver of premium rider", "waiver of premium for disability" or "waiver of premium for payer benefit."

Synonyms
relieve payment, don't have to pay, provision

Related Terms and Acronyms

  • Lapsed Policy Definition,
    • A policy that is no long in effect due to missed payments, inaction or its term ending.
  • Non-Forfeiture Clause Definition,
    • A clause that allows a policyholder to receive partial or full benefits and/or a refund of premiums if the policy lapses due to unpaid premiums.
  • Reinstatement Definition,
    • Resuming an insurance policy that has either lapsed or been terminated.
  • Waiver Definition,
    • The intentional and voluntary renunciation, abandonment, or surrender of some claim, right, or privilege.
  • Waiver of Restoration Premium Definition,
    • A provision that frees an insurance policyholder from needing to pay a fee in order to resume coverage after a claim.
  • Waiver of Subrogation (WOS) Acronym,
    • A provision that prevents an insurer from pursuing a third party for damages to insured property.
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