You are on:

Premium waiver

Explanations

“Premium waiver” refers to a provision in an insurance contract where, during the premium payment period, the insurance company agrees to waive the future premiums if a specified condition applies to the policyholder or the insured such as death, disability, or critical illness, and the insurance contract remains valid.

There are usually two situations where premium waiver applies:

1. Premium waiver for the policyholder: When the policyholder loses the ability to work due to accident or illness, the insurance company waives the future premiums that the policyholder should pay, while maintaining the insured's protection. This is suitable for parents purchasing insurance for their children.
2. Premium waiver for the insured: When the insured loses the ability to work due to accident or illness, the insurance company waives the future premiums that the insured should pay, while maintaining the insured's protection. This is suitable for individuals who pay the premiums themselves.

Occurrence scenarios

Premium waiver benefits originated from children’s insurance policies, where if the parent who is the policyholder loses their ability to work, the child can still receive the insurance protection. Nowadays, this benefit is also common in critical illness insurance and life insurance. After experiencing the covered scenarios of these two types of policies, the insured's financial resources are often severely depleted. The premium waiver benefit can reduce the economic burden to a certain extent and shows that the insurer cares.

Examples

Client C purchased a critical illness insurance policy with premium waiver benefits, which requires a payment period of 20 years. In the fifth year of payment, the client was diagnosed with malignant tumors specified in the insurance contract. In this case, the client can apply for a claim for critical illness insurance and trigger the premium waiver benefits. The client does not need to pay premiums for the next 15 years and can still enjoy insurance protection.

key points

Premium waiver is an additional benefit rather than the main focus when considering insurance products. The main protection benefits of the insurance product are still the key and require focused understanding and attention.

The conditions for some premium waivers may be more stringent, so be sure to refer to the actual terms and conditions.

If you would like to learn more, please feel free to consult with our insurance advisors.

Still Need Help?

Contact Us Now

Contact Us

Pacific Prime works with many insurers to provide insurance products and services for individuals, families and corporates.

Customer Service

There are several ways Pacific Prime can support your journey to a healthier you.

Compare Quotes

Get Quote

Pacific Prime will provide you with relevant insurance options and price comparisons based on your needs.

Blog

Insurance Information

Pacific Prime provides you with up-to-date insurance know-how and professional guidance.

Keeping insurance simple for you
Consent
Choices