DEFINITION of 'Waiver Of Restoration Premium '

A clause in an insurance policy that says that the insurance company will not require the policyholder to pay a fee to get back the level of coverage that their policy initially provided before any claims were paid out. If a policy does not contain the waiver of restoration premium, it may be possible to regain coverage by paying an additional premium.

BREAKING DOWN 'Waiver Of Restoration Premium '

On the other hand, the policy may simply become exhausted once the policy limits have been reached. Insurance policies have a maximum amount that they will pay for both individual incidents and over the life of the policy. If restoring an insurance policy is not an option, the insured may want to purchase secondary policies that can go into effect if the primary policy becomes exhausted.

  1. Classified Insurance

    Insurance coverage provided to a policyholder that is considered ...
  2. Participating Policy

    A participating policy is insurance that pays dividends to policyholders. ...
  3. Assessable Policy

    A type of insurance policy that may require the policyholder ...
  4. Adjustable Life Insurance

    A type of life insurance that combines features of term and whole ...
  5. Developed Premium

    A premium based on estimates of a policyholder’s risk profile ...
  6. Insurance Coverage Area

    The geographic region in which an insurance policy’s benefits ...
Related Articles
  1. Financial Advisor

    7 Issues to Consider When Determining Life Insurance Coverage

    Seven issues to consider when buying life insurance to ensure the coverage is tailored to meet your personal financial situation.
  2. Insurance

    Understanding Taxes on Life Insurance Premiums

    Learn about the tax implications of life insurance premiums, including when they might be taxable and whether they are tax deductible.
  3. Financial Advisor

    Understanding Life Insurance Premiums

    When buying permanent life insurance, what amount of premium should you pay for the coverage?
  4. Insurance

    Does Buying a Guaranteed Life Insurance Policy Make Sense?

    When does it make sense to buy a life insurance policy that is guaranteed?
  5. Insurance

    Life Insurance Clauses Determine Your Coverage

    Understanding these key parts of your policy will help you to ensure that your family will be covered.
  6. Insurance

    Insurance, Excess Insurance and Reinsurance: What's the Difference? (ALL)

    Understanding the differences might help you avoid being overinsured or underinsured.
  7. Financial Advisor

    Buying a Life Insurance Policy? Read This First

    Knowing who needs life insurance, how it works and the different types of insurance can help consumers make informed decisions about this product.
  8. Insurance

    5 Life Insurance Questions You Should Ask

    Confused about $1 million dollar insurance advertising claims? Decide whether they'll pay off for you.
  9. Insurance

    7 Life Insurance Planning Mistakes to Avoid

    When planning your life insurance, avoid these seven mistakes to ensure your family is protected.
Hot Definitions
  1. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  2. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  3. Compound Interest

    Compound Interest is interest calculated on the initial principal and also on the accumulated interest of previous periods ...
  4. Income Statement

    A financial statement that measures a company's financial performance over a specific accounting period. Financial performance ...
  5. Leverage Ratio

    A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt, or ...
  6. Annuity

    An annuity is a financial product that pays out a fixed stream of payments to an individual, primarily used as an income ...
Trading Center