In the context of Life Insurance, "Waiver of Premium" means that if you are off work due to accident, illness, or unemployment, then the premiums on your policy are paid for you by the insurance company and, thereby, your policy is kept up to date.
In the context of life insurance, "Waiver of Premium" is an optional extra. It ensures that, if you are off work for a period of time due to accident, illness or being made redundant, then the premiums on your life insurance policy are paid for you by the insurance company and your policy is kept up to date. Remember that if at any time you stop paying the monthly premiums, the insurance company will cancel your policy - this is called letting your policy "lapse".
Some insurance companies also call this option ‘Premium Protection’. (Please note that Waiver of Premium will not cover you if you became unemployed voluntarily.)
The option is very cheap and in our view, well worth adding to your policy.
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