Disability Waiver of Premium

A disability waiver of premium is a rider that suspends the policyholder's obligation to pay premiums if they become totally disabled and unable to work, as defined by the policy. The insurer continues the policy in full force during the disability period, preserving the death benefit and — for permanent policies — the accumulation of cash value. Disability is typically defined as inability to perform any occupation (the stricter standard) or inability to perform your own occupation (the more favorable standard). The rider must usually be added at policy issue and involves an additional premium. Benefits activate after a waiting period — commonly 90 to 180 days of continuous disability.