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