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Waiver Of Premium For Payer Benefit

What is 'Waiver Of Premium For Payer Benefit '

A clause in an insurance policy that says that the insurance company will not require the insured to pay a fee to maintain the policy under certain conditions. Most commonly, these conditions are the death or disability of the person paying the insurance premiums. The insurance company may charge a higher premium to include this waiver in the policy to compensate for the additional risks presented with a waiver of premium for payer benefit.

Explaining 'Waiver Of Premium For Payer Benefit '

For example, if a parent or grandparent purchased a life insurance policy for their child or grandchild, the policy might contain a waiver of premium so that the child would continue to be covered even if the parent or grandparent died or became disabled and was no longer able to pay the premiums. The waiver might only apply until the child reached an age where he or she could be expected to pay the premiums alone, such as age 21.


Further Reading


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… In addition, the time period allowed for medical expenses, net premiums and re … In 2019, administering the third-party payer system will cost governments and businesses in … reduce the administrative burden for providers through regulations that standardize benefit packages. 28 …



Q&A About Waiver Of Premium For Payer Benefit


What does "permanent" mean in reference to an insurance policy?

Permanent means that this type of insurance covers you throughout your life as long as you continue making payments on your premiums.

Who can be covered by a waiver of premium for payer benefit?

The payor, or the insured's spouse, may be covered by this type of rider.

Is there more than one kind of waiver of premium for payer benefit?

Yes, there are two types; one that applies specifically to the insured and another that applies specifically to the beneficiary.

What does it mean when there is a waiver of premium for payer benefit?

It means that you do not have to continue paying premiums on your own life insurance policy if something happens to you, such as death or disability, so long as your child is still living and has not reached an age where he/she can be expected to pay the premiums alone (such as 21).

When might someone purchase this type of insurance?

Someone might buy this type of insurance if they wanted to make sure their child would be covered even if something happened to them and they could no longer pay the premiums on their own.

What is a waiver of premium for payer benefit?

A waiver of premium for payer benefit prevents a permanent insurance policy from lapsing if the payor becomes disabled.

How does a waiver of premium for payer benefit work?

If the insured becomes disabled and unable to make payments on their own insurance policy, then they will not have to worry about losing their coverage because it is guaranteed through this rider.

Who might purchase this type of insurance?

Parents or grandparents may purchase this type of insurance for their children or grandchildren.

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