What Does Waiver Of Premium Rider Mean?

The term refers to one of the stipulations present in the terms and conditions of an insurance contract. According to this stipulation, the policy owner’s obligations of having to pay insurance premiums are suspended in case he or she becomes disabled or doctors discover a life-threatening, incurable disease. But the coverage or other benefits of the contract will still be available for the policy owner.

Therefore a waiver of premium rider gives people the chance to have insurance product benefits even if they end up not being able to work.

Waiver Of Premium Rider Explained

In exchange for a predefined charge, insurance companies usually put a waiver of premium rider into the insurance contract’s terms and conditions. Other stipulations may also occur, such as the policy owner may be asked to prove he or she is healthy, and he or she must not be over a certain age.

Moreover, waivers typically bear a relation to life insurance contracts. In order to a waiver to become effective, certain requirements should be kept. For instance, one’s disability is officially accepted only if it lasts for a certain amount of time, usually for about six-twelve months.