Waiver of Premium

Waiver of premium is a rider or policy provision that exempts the policyholder from paying premiums if they become totally disabled and unable to work, while keeping the policy fully in force. The insurer waives premium obligations for the duration of the qualifying disability, protecting the policy from lapsing. Most waiver of premium riders define total disability as the inability to perform any gainful occupation (or, in some riders, the insured's own occupation). There is typically a waiting period — commonly 90 to 180 days — before benefits begin. The rider must usually be added at policy issue, and there is an age cutoff — often 60 or 65 — after which it no longer applies.