how a waiver of premium for disability works
two types of insurance policies that commonly include a waiver of premium for disability are life insurance and disability insurance the waiver can mean the difference between the insured being able to keep the policy or having to give it up if they become disabled is unable to work and no longer has an income this waiver is particularly important for disability insurance because if the insured had to pay premiums after becoming disabled they would not be protected against the peril they were trying to insure against usually this waiver applies retroactively to the beginning of the disability if the insured made premium payments while the waiver was in effect those premiums are usually refunded to the insured in full many insureds choose to have this rider attached to their policy because in the event of a disability it allows the policy to continue functioning normally on all fronts including the death benefit dividends and cash values when the disability ends the policy owner starts making premium payments again issues can arise if an insurance company denies a life or disability insurance claim based on non payment of premiums because the insured thought that the waiver of premiums was in effect how the provision functions vary by contract and every insurance policy defines totally disabled differently 1experts advise that an insured person contact an attorney if a claim is denied based on non payment of premiums or the insurance company declared the decedent not disabled as defined in the policy example of a waiver of premium disabilityusually a person is considered totally disabled if they can t perform the duties of an occupation for which they are qualified by education training or experience an injury or sickness must cause the disability in question for example if alex sells cars their duties include speaking with customers about buying cars if an injury or illness prevents them from being able to handle this and other related duties they will usually be considered disabled if alex has a waiver of premium disability and the insurance company defines them as totally disabled they will be able to utilize the waiver 