Waiver of premium

Waiver of premium must be set up during your life insurance application, it can’t be added at a later date.

If you're incapacitated due to an illness or injury during the term of your cover, you can then make a waiver of premium claim.

Your cover will then remain intact without the need to make monthly payments whilst you remain incapacitated until your policy expires or until you reach a specific age.

The upper age limit covered by waiver of premium benefit will differ depending on the insurer, therefore, it's important to review your policy terms and conditions.

This is usually around retirement age.

If incapacity ceases and you're able to return to work, premium payments will recommence.

The good news is that waiver of premium allows you to make multiple claims.

Therefore, if upon returning to work you become incapacitated again, you can file for waiver of premium again.

If this is a continuation of the previous illness/injury, you may be able to file for a continuation and waiver of premium can commence immediately.

If the incapacitation is as a result of a new illness/injury you may be required to satisfy the waiting period before you can make a new claim.

In order to make a waiver of premium claim, you'll need to meet specific criteria.

This includes being incapacitated by an illness or injury which requires medical/surgical treatment and having continued to make premium payments for the specified waiting period.

To make a claim, you'll need to contact your life insurance provider and produce evidence of your illness/injury, usually in the form of medical documentation.

Different life insurance providers will have differing definitions of ‘incapacitated’.

Some insurers will accept you being unable to work your specific job, others will require being unable to work a job suited to your specific education and skill set, whilst others will only accept your waiver of premium claim if you're unable to work any job.

As discussed, the waiver of premium benefit is accepted or declined using the underwriting process at the point of life insurance application.

Therefore, any pre-existing medical conditions you have will be on record.

It's unlikely you'll be declined a waiver of premium benefit being added to your life insurance policy, although exclusions may be added depending on any pre-existing conditions.