# Waiver of Premium Rider: Benefits, Eligibility, and Costs Explained

## What Is a Waiver of Premium Rider?

A waiver of premium rider is a clause in life insurance policies that waives premium payments if the policyholder becomes critically ill, seriously injured, or physically impaired. There may also be other stipulations, such as meeting specific health and age requirements. 

People with life insurance policies might consider a waiver of premium rider if they are concerned about being injured on the job or otherwise unable to work. If the insured is unable to work, the waiver allows them to maintain life insurance without continuing to pay premiums.

### Key Takeaways

*   A waiver of premium rider waives premium payments if the policyholder becomes critically ill or disabled.  
    
*   The rider must be added at the time of purchasing the insurance policy and comes with an additional fee.  
    
*   There is usually a waiting period before the waiver benefits take effect, during which premiums need to be paid.  
    
*   Applicants with pre-existing conditions or who are already impaired typically do not qualify for the waiver of premium rider.  
    
*   This rider can provide financial relief by allowing policyholders to redirect funds to essential expenses during critical times.

## Understanding the Functionality of Waiver of Premium Riders

Many policyholders add this [rider](https://www.investopedia.com/terms/r/rider.asp) as an extra benefit to their life insurance. You can only add it when the policy starts, and costs differ by insurer and applicant. Insurance companies typically add the rider fee to the premium or charge an upfront fee. This fee raises the cost of a life insurance policy.

Most waivers have a waiting period where you can't claim benefits.  If you become impaired or hurt during the waiting period, you might get a full refund of premiums paid. Without a waiting period, the insurance company faces higher risk.

Those with [pre-existing disabilities](https://www.investopedia.com/terms/p/preexisting_condition.asp) do not qualify for waiver of premium benefits. Placing a pre-existing limitation avoids the possibility of writing a policy that would not yield premium payments from the high-risk applicants.

> **Important**
>
> Waivers can be added (if available) to term, whole, and universal life insurance policies.

## Advantages of Adding a Waiver of Premium Rider

Physical impairment, critical illness, and severe injury are the most common qualifying conditions under the waiver of premium rider. Terms and benefits vary by insurance product and company. You must be disabled for a certain period, like six months, before the waiver starts.

The waiver helps if you can't work due to illness or injury. The most commonly considered diseases are those that require significant hospital stays resulting in the policyholder being unable to work. Some riders require only that your condition affects your ability to work.

> **Warning**
>
> Waiver of premium riders may not be available in all states.

## Navigating Waiver of Premium Claim Requirements

To file a claim, you usually need a doctor’s statement and [Social Security Administration (SSA)](https://www.investopedia.com/terms/s/ssa.asp) notice confirming disability. The applicant can then submit a completed claim form. 

The waiver lets you redirect limited funds to care, finances, and living costs. However, the most signficant benefit is the continued protection of the insurance policy.

## How much does a waiver of premium rider cost?

A waiver of premium rider's cost will depend on several factors, including your age, health and amount of coverage. For example, you might pay about $3 a month if you're a 35-year-old man with a 20-year, $500,000 term life insurance policy for $21.05 a month.

## What are some restrictions?

Waiver of premium riders may contain several restrictions such as you may not have any pre-existing conditions or physical impairments. You may also face health and age restrictions. Finally, a waiver of premium rider may not be available in your state.

## What are the claim requirements?

Typically to file a claim a holder must submit a physician's statement and notice from the [Social Security Administration (SSA)](https://www.investopedia.com/terms/s/ssa.asp) confirming the disability. The waiver of premiums allows the redirection of limited personal funds to palliative care, personal finances, and living expenses. 

## Key Insights on Waiver of Premium Riders

A waiver keeps your life insurance active if you can’t work, freeing cash for essentials. With whole life insurance policies, it will allow your cash component to continue to grow. In these ways, waiver of premium riders can provide an important financial asset for many people.

However, choosing a waiver of premium will increase the total costs of your life insurance policy. They are also not available in all states. Consider consulting with a financial advisor to determine whether a waiver of premium policy is right for your situation.

> **Article Sources**
>
> 1.  New York State Department of Financial Services. ["Optional Riders and Supplemental Benefits."](https://www.dfs.ny.gov/consumers/life_insurance/optional_riders) 
>     
> 2.  Nationwide. “[Premium Waiver Rider](https://www.nationwide.com/personal/insurance/life/riders/types/premium-waiver).”
>     
> 3.  Progressive. "[Waiver of Premium Disability Rider](https://www.progressive.com/answers/life-insurance-disability-premium-waiver-rider/)."
>     
> 4.  Haven Life. “[5 Things You Should Know About the Waiver of Premium Rider](https://havenlife.com/blog/waiver-of-premium-rider/).”
>     
> 5.  HavenLife.com. ["Waiver of Premium Rider."](https://havenlife.com/blog/waiver-of-premium-rider/)