Glossary: Waiver of premium

Bought as an option on an insurance policy, a waiver of premium guarantees to pay the policy’s premiums if you are unable to, whether through illness or unemployment. Depending on the terms of the waiver, the payments are made until the end of the policy term, a specified age or until you are able to return to work. The payments are usually made after a set deferment period; normally 26 weeks (six months).

Relevant to: Life insurance

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