Waiver of Premium Law and Legal Definition
Waiver of premium is a benefit or provision in a life insurance contract which maintains coverage for a seriously ill individual and waives premium payments by the insured during the disability period. It is a clause in an insurance policy which provides that all policy premiums will be waived if the policyholder becomes seriously ill or disabled, either permanently or temporarily, and therefore is unable to pay the premiums.
A waiver of premium allows people to benefit from an insurance policy, even when they cannot work. Some policies include a waiver-of-premium clause automatically, while in other cases it is an optional feature that must be paid with additional premiums. During the waiver period, all policy benefits remain in force.