What Is a Premium Waiver in Long-Term Disability Insurance?
Long-term disability insurance policies exist as a safety net for individuals if, through accident or illness, they become unable to perform their duties of employment. As with other types of insurance, in order to keep your policy in good standing premiums need to be paid on it, whether monthly or yearly.
But what happens when an insured is rendered disabled from work and unable to afford to pay their ongoing insurance premiums? The answer is a waiver of those premiums.
The Purpose and Benefits of Premium Waivers
A premium waiver is a clause within a long-term disability insurance policy that allows the insured party to stop paying premiums while still maintaining coverage. A premium waiver is typically triggered when the individual covered under the policy is found to have met the definition of disabled. Once the individual meets that threshold premiums … Continue reading