Definition of "Waiver of Premium"

When an individual becomes eligible for benefits (such as disability or long term care), no further disability premium payments are required as long as benefits are being paid out.

In some policies, a provision which relieves the insured of having to make premium payments after he or she has been disabled for 90 days, or the elimination period, if shorter. In addition, premiums paid during those 90 days are refunded and premiums due during the 90 days after recovery are waived.

With this rider, a life insurance organization will pay an insured's premiums and keep a certificate in force should the insured meet specified disability conditions.

A life insurance policy rider that pays the premium on the policy in the event that the insured becomes disabled. Generally there is a waiting period (e.g., six months). The policy remains inforce and the values continue to grow as if the premiums were paid.