Waiver of Premium
A waiver-of-premium rider is designed to protect life insurance customers from an unexpected disability that makes it difficult to pay premiums. Normally, inability to pay your life insurance premiums each month would result in cancellation of your coverage. The waiver-of-premium rider allows qualified life insurance customers who develop disabilities to stop paying their monthly premiums for the duration of their disabilities — and keep their coverage.
The waiver is usually associated with a rider to a life insurance policy and requires the policyholder to be disabled for a specified amount of time, such as being incapacitated for six months, in order to activate the rider.