What is waiver of premium?  
Waiver of premium is the term used when the insurer gives up its right to collect a policy's premiums on the occurrence of some specified event. This waiver may be until the expiry or maturity of the policy or until the insured reaches a specific age. There are basically 2 versions of the waiver of premium benefit:
  • Waiver of premium for disability benefit. This provides that the insured does not need to make any further premium payments if the insured becomes unable to work because of an accident or injury.
  • Waiver of premium for payor benefit. This provides that the policyowner (or payor) will be exempted from making any further premium payments if the policyowner, not the insured (usually the child), dies or becomes disabled.

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