By Madeleine Maltese
Many life insurance contracts provide that the insured will not have to pay their premiums — and that their insurance will remain in force — if they become disabled. This is called the waiver of compensation in the event of disability.
The waiver of premiums “extends” the protection provided by the contract and is offered at an additional cost. If the agreement provides for tips release, the insurer will waive the collection of premiums if the insured becomes disabled. However, premiums do not cease to be paid altogether; the insurer undertakes to pay them during this period.
But be careful; if you have taken out the waiver of premiums, check your contract carefully as it may include restrictions. Some examples :
a waiting period of 3 to 6 months between the onset of the disability and the time when the insured is no longer required to pay premiums;
the period in which the disability occurs: for example, only disabilities that occur between the ages of 15 and 65 are taken into account;
other limitations and exclusions may also apply, depending on the contracts.
Another good reason to read your contract carefully: the insured must follow the procedure and provide the information required to be entitled to the waiver of premiums.
In other words: When an insurance contract provides for the waiver of premiums in the event of disability, you have a holiday from payment while you are disabled, and you continue to be covered unless restrictions apply to your contract.
