You can save a lot of money by doing this when you buy insurance


Consumers need to pay certain premiums when they buy insurance. Some long-term insurance policies such as critical illness and life insurance even have premiums that can last for decades. If you accidentally disconnect your premiums during the payment period, there is a good chance that you will lose your insurance coverage. However, there is a way for you to continue to enjoy your insurance coverage without having to pay premiums, and this is called a "premium waiver". But what exactly does a premium waiver mean? Who can buy it? This article will explain these questions to you.


Each policy has a policyholder and an insured, the policyholder is responsible for paying the premiums and the insured is the one who is covered, they can be the same person or different people. A premium waiver means that if something unfortunate happens to the policyholder or the insured during the premium payment period, such as an illness, the remaining premiums of the policy will not be paid, but the coverage will remain in force. Therefore, a premium waiver can be divided into a policyholder waiver and an insured waiver. To facilitate your understanding, we have given an example.


Jack buys a critical illness policy for his son, so the policyholder is Jack and Jack's son is the insured. Jack also has a waiver for the insured and a waiver for the insured, both of which can waive minor illnesses. Assuming that Jack or his son suffers from a minor illness in the tenth year of coverage, Jack's son will not have to pay any subsequent premiums, but the coverage will remain in force. With this example, it is easy to see that premium waiver are useful in the event of an accident and can help consumers save a significant amount of money, so can everyone buy a premium rider?

Currently, some life insurance policies and most critical illness policies on the market can come with a premium waiver. Many critical illness insurance policies also come with waivers for some diseases of the insured. Therefore, if you buy some critical illness insurance, you do not need to attach an additional insured's waiver in most cases. As to whether you need to attach a specific policyholder waiver, you need to pay attention to the following points.


The first thing to look at is whether the insured is in a position to continue paying the remaining premiums if something unfortunate happens to the policyholder and he or she is unable to renew the remaining premiums. A few of the more common scenarios are parents or children of the insured, who are mostly the main breadwinners of the family. If they have an accident and cannot pay the premiums, the parents and children will lose their protection, so this situation is recommended to be attached. To buy insurance for your spouse, you can consider both spouses as mutual policyholders and both attach policyholder exemptions. All in all, it is necessary to add a policyholder's waiver when insuring your family.