3.13.2 Waiver of Premium
The waiver of premium rider is included in most life insurance policies and some health insurance policies exempting the insured from paying premiums after being disabled for a specified period of time, usually six months in life policies (90 days or six months in health policies).
The waiver of premium rider is available on both permanent and term life insurance policies and typically means that if a person experiences "total disability," they can be exempt from paying their premiums during the time of disability. Premiums are usually waived from the date disability occurs (paid retroactively) until the specified time period ends.
There is generally a waiting period in which the policyowner continues paying premiums. If the insured is still disabled at the end of this period, the company will refund all of the premiums paid by the policyowner from the start of the disability.
(This rider is usually included with guaranteed renewable and noncancelable individual disability income policies.)
