Waiver of Premium

The premium waiver benefit is generally a built-in feature of your life insurance policy. It allows for your premiums to be waived on your life insurance policy if you suffer from a serious disablement.

Published August 27, 2015

Compare, Save and Buy Life Insurance

Or call us on:

1300 135 205

What is serious disablement?

The definition of serious disablement will differ between insurance companies.

Please see examples below from a select few below:

Insurer 1:

If you are aged under 65 and you have suffered a sickness or accident and are unable to perform at least 2 activities of daily living.

Insurer 2:

If you are unable to work for at least three consecutive months due to a sickness or injury.

How does the Waiver of Premium Benefit work?

If you satisfy your life insurance company’s definition of serious disablement, your premiums may be waived. However, generally in order for this to happen, you may need to continue paying your premiums for the first 3-6 months of total disablement.

If after this period you continue to be seriously disabled, the premiums you have paid while totally disabled will be refunded and your future premiums will be waived on your life insurance policy.

How long will my premiums be waived for?

Life insurance companies will generally offer different periods for this option. Generally premiums will be waived until:

When will the Waiver of Premium Benefit not be able to be used?

Your premiums may not be waived if your severe disablement is a result of:

When you are conducting your life insurance comparison it is important to speak to our specialists about whether or not this benefit is included as part of your policy and when this benefit may be available to be used.

Get an instant Insurance quote

Or call us on:

1300 135 205

Other topics

Ask an Expert?