Waiver of Premium for Disability
Candlefocus EditorThe definition of disability and requirements for a waiver to be enacted may differ among insurers and individual policies. Generally, a disability must occur due to an illness or injury, and the insured must be considered "totally disabled" in order to qualify. For example, they may not be capable of working in their job, or can only work part-time with reduced pay. In some cases, a doctor's diagnosis may also be required as evidence of disability.
It is important for a potential policyholder to understand their specific insurance policy and what criteria the company uses for a waiver of premium for disability. Insurers may charge a higher premium for the added benefit of a waiver provision, but the additional expense may be worthwhile for many to be protected in case of an unexpected disablement.
For those with permanent or long-term disabilities which meet the company's criteria, a waiver of premium for disability can provide long-term financial security and peace of mind. The provision may also provide invaluable protection for families who rely on the insured's income, so that in the event of the policyholder's disability the financial security of their family can be safeguarded with their continued insurance coverage.