Waiver of Premium
/WAY-vur uhv PREE-mee-um/
A rider that waives premiums if you become disabled.
Definition
Waiver of premium is a rider (usually in life or disability insurance) that keeps your policy active without requiring premium payments if you become disabled and can't work. The definition of disability and waiting periods vary by policy.
Example
When Tom became permanently disabled, his waiver of premium rider kept his life insurance active without further payments.
More Life Insurance Terms
Coverage for a specific period with no cash value.
Permanent coverage with guaranteed cash value.
Flexible permanent coverage with adjustable premiums.
The amount paid to beneficiaries when the insured dies.
The person who receives the insurance payout.
The savings component of permanent life insurance.
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