Waiver Of Premium Rider

AAA

DEFINITION of 'Waiver Of Premium Rider'

A clause in an insurance policy that waives the policyholder's obligation to pay any further premiums should he or she become seriously ill or disabled. A waiver of premium allows people to benefit from an insurance policy, even when they cannot work.

INVESTOPEDIA EXPLAINS 'Waiver Of Premium Rider'

For an upfront charge, most insurance companies will incorporate a waiver of premium into a policy. The waiver is usually associated with life insurance policies, and requires the policyholder to be disabled for a specified amount of time, such as being incapacitated for six months. To have a waiver of premium, some companies may also place other requirements on the policyholder, such as being healthy and below a certain age.

RELATED TERMS
  1. Waiver Of Premium For Disability ...

    A provision in an insurance policy that states that the insurance ...
  2. Waiver Of Coinsurance Clause

    Language in an insurance policy that says the insurance company ...
  3. Exoneration

    In a general sense, this term means to free from blame or guilt, ...
  4. Life Insurance

    A protection against the loss of income that would result if ...
  5. Premium

    1. The total cost of an option. 2. The difference between the ...
  6. Dread Disease Rider

    A special addition to a life insurance policy that gives a percentage ...
Related Articles
  1. A Look At Single-Premium Life Insurance
    Home & Auto

    A Look At Single-Premium Life Insurance

  2. How Much Life Insurance Should You Carry?
    Insurance

    How Much Life Insurance Should You Carry?

  3. How To Avoid Taxation On Life Insurance ...
    Options & Futures

    How To Avoid Taxation On Life Insurance ...

  4. Life Insurance: How To Get the Most ...
    Retirement

    Life Insurance: How To Get the Most ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center