DEFINITION of 'Waiver Of Premium For Disability '
A provision in an insurance policy that states that the insurance company will not require the insured to pay the usual recurring fee to maintain the health insurance policy if the person responsible for paying the premiums is seriously injured. Insurance companies can vary in their definition of a disability, and policies can vary on when and for how long they will waive a premium in the event of a disability. Also, insurance companies may charge a higher premium to include this waiver in the policy.
BREAKING DOWN 'Waiver Of Premium For Disability '
Two types of insurance policies that commonly include a waiver of premium for disability are life insurance and disability insurance. The waiver can mean the difference between the insured being able to keep the policy or having to give it up if he or she becomes disabled, is unable to work and no longer has an income. This waiver is particularly important for disability insurance because if the insured had to pay premiums after becoming disabled, they would not be protected against the peril they were trying to insure against.