Understanding Premium Protection in Life Insurance
Premium protection—also known as Waiver of Premium in some countries—is a benefit added to life insurance policies that ensures your cover remains active, even if you’re no longer able to pay your premiums due to unforeseen circumstances.
This benefit is especially helpful if the policyholder becomes disabled, critically ill, or suffers a long-term injury that prevents them from working and earning an income.
If you’re unable to pay your premiums due to health or occupation-related reasons:
- Your insurer takes over the premium payments on your behalf.
- This keeps your life insurance policy active without interruption.
- If you are paying for someone else’s life cover and become disabled or die, the insurer continues payments to maintain that policy’s benefits.
The benefit is typically available for policyholders between the ages of 18 and 70, depending on the insurer.
This benefit is especially helpful if the policyholder becomes disabled, critically ill, or suffers a long-term injury that prevents them from working and earning an income.
If you’re unable to pay your premiums due to health or occupation-related reasons:
- Your insurer takes over the premium payments on your behalf.
- This keeps your life insurance policy active without interruption.
- If you are paying for someone else’s life cover and become disabled or die, the insurer continues payments to maintain that policy’s benefits.
The benefit is typically available for policyholders between the ages of 18 and 70, depending on the insurer.
Advantages of Premium Protection
Factors That May Affect Your Eligibility
Your eligibility and premium for this benefit may be impacted by the following:
- Health history: A family history of chronic illness may increase premiums or limit eligibility.
- Lifestyle habits: Smoking and excessive alcohol consumption negatively affect eligibility.
- Physical health: A BMI over 35 could result in higher premiums or reduced access to this benefit.
Premium protection is a valuable feature that offers peace of mind, ensuring your life insurance remains in force even if life takes an unexpected turn. Speak to your insurer or financial advisor to find out if this benefit is right for you
- Health history: A family history of chronic illness may increase premiums or limit eligibility.
- Lifestyle habits: Smoking and excessive alcohol consumption negatively affect eligibility.
- Physical health: A BMI over 35 could result in higher premiums or reduced access to this benefit.
Premium protection is a valuable feature that offers peace of mind, ensuring your life insurance remains in force even if life takes an unexpected turn. Speak to your insurer or financial advisor to find out if this benefit is right for you
