What is the definition of Waiver of Premium for Disability (WP) Benefit?
Waiver of Premium for Disability Benefit refers to a rider that is added to the standard life insurance coverage where the insurance company waives the requirement for an insured person to pay premiums if the insured person becomes totally disabled and losses the ability to earn an income. The policy continues to provide coverage to the insured person and remains in effect until the stated maturity or termination date of the contract, or until the insured person ceases to be totally disabled and has the means to earn an income.
This benefit is subject to the policy's definition of disability. An extra premium is often tacked on for this additional coverage.
It is important to note that with total disability, the insured person may have to wait for six month (without income) before he is allowed to stop making premium payments to the policy.
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