waiver of premium
C1Formal, Technical, Legal
Definition
Meaning
A clause in an insurance policy that allows the policyholder to stop paying premiums under specific conditions, while keeping the coverage active.
A contractual provision, often related to life, disability, or critical illness insurance, where the insurer waives the requirement to pay further premiums if the insured becomes seriously disabled or meets other predefined criteria. The benefit continues as if premiums were still being paid.
Linguistics
Semantic Notes
This is a legal and financial compound noun phrase, typically used as a singular entity. It refers to the provision itself, not the act of waiving.
Dialectal Variation
British vs American Usage
Differences
The term is identical in spelling and core meaning. Differences may arise in the specific legal or regulatory framework surrounding the provision.
Connotations
Neutral, technical term in both varieties. Implies financial security and risk management.
Frequency
Equally common in both British and American English within insurance, financial planning, and legal contexts.
Vocabulary
Collocations
Grammar
Valency Patterns
The policy [includes/features] a waiver of premium.The [rider/benefit/clause] waives the premium.The insured [qualified for/triggered] the waiver of premium.Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “No common idioms. It is itself a technical term.”
Usage
Context Usage
Business
Common in discussions of employee benefits packages and key person insurance.
Academic
Used in finance, actuarial science, and law papers discussing insurance contract design.
Everyday
Rare. Used when explaining or purchasing life/disability insurance.
Technical
The primary context. Precise definition in insurance underwriting, policy documents, and financial advising.
Examples
By Part of Speech
verb
British English
- The clause will waive the premium upon total disability.
American English
- The rider waives future premiums if you become disabled.
adjective
British English
- The waiver-of-premium benefit is a key feature.
American English
- He reviewed the waiver-of-premium provision carefully.
Examples
By CEFR Level
- His insurance has a waiver of premium if he gets sick.
- You should check if your policy includes a waiver of premium rider in case of long-term disability.
- The actuarial cost of adding a waiver of premium provision to the group policy was carefully calculated to ensure long-term viability.
Learning
Memory Aids
Mnemonic
Think of a 'WAIVEr' as a person waving goodbye to your PREMIUM payments when bad luck strikes, letting your coverage stay.
Conceptual Metaphor
INSURANCE PROVISIONS ARE SAFETY NETS. This provision is a specific knot in that net that prevents you from falling through if you can't hold on (pay).
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid a direct word-for-word translation. It is a set financial/legal term. The equivalent is often 'освобождение от уплаты страховых взносов' or 'оговорка об освобождении от премии'.
Common Mistakes
- Using it as a verb (e.g., 'They waived of premium'). Correct: 'They invoked the waiver of premium.'
- Confusing it with 'waiver fee' or 'premium reduction'. It is a complete cessation of payment under conditions.
- Misspelling as 'waiver of premium' or 'waver of premium'.
Practice
Quiz
What is the primary purpose of a 'waiver of premium' clause in an insurance policy?
FAQ
Frequently Asked Questions
No, it is typically an optional rider or add-on that must be selected and may involve an additional cost.
Common triggers include total disability, critical illness, or sometimes permanent unemployment, as specifically defined in the policy contract.
It lasts for the duration specified in the policy, often until recovery, a certain age (e.g., 65), or the end of the policy term.
No, the waiver applies only to future premiums due after the qualifying event is approved. Past premiums are not refunded.