Adding waiver of premium to your life insurance

Life insurance is all about looking after those you love if the worst happens. You pay a monthly premium and the policy pays a sum of money to those you nominate if you die while the policy is still active. It can make a big difference to those left behind. However, if you can’t pay your premiums, the policy will end and you will no longer be covered. Leaving you without the financial protection that life insurance provides.

A waiver of premium (sometimes called a waiver of premium rider) is an extra benefit that you can choose to add to your life insurance policy for an additional cost. If you fall seriously ill or are injured and can’t work for a long period of time, you can claim on your waiver of premium. If your claim is successful, your life insurance premium payments will then be covered until you return to work.

Waiver of premium can be a real help at a time when your finances may be stretched to the point that can’t afford to keep your premiums up to date. Around 2.8 million people in the UK were not working because of long-term sickness in the last quarter of 2025, so it’s something that could happen to anyone.

If you can’t work because of a serious health issue, you could make a claim on your waiver of premium. This would cover the premiums until you’re well enough to go back to work. So even if you couldn’t afford to pay the premiums because you’re off work, your life insurance policy would continue and your family wouldn’t miss out on a potential payout.

The waiver only applies if you’re medically unable to work and doesn’t cover redundancy or unemployment.

Adding a waiver of premium rider to your life insurance policy means you’ll pay more for your premiums, so you need to weigh up if it’s worth it for you.

Here’s a snapshot of how waiver of premium works:

• You fall seriously ill or get injured and are unable to work.
• You generally have to wait for a certain amount of time before you can claim. Each provider is different, but the waiting period is usually between 3 and 6 months.
• After the waiting period is finished, you can file a claim with your provider. They’ll ask for medical evidence.
• If you meet their definition of incapacity, your premiums will be paid until you’re fit to go back to work.
• Once you’re able to go back to work, you’ll then start paying your own premiums again.
• You can claim multiple times if you’re unwell again once you’re back to work.

The pros and cons of adding waiver of premium

There are several benefits to adding a waiver of premium rider to your life insurance policy. If you’re seriously ill or injured, it’s likely to be a stressful time. Having a waiver of premium rider can give you some breathing space, so you don’t need to worry about paying your life insurance premiums when your income may be lower. Your life insurance policy will continue without you having to shell out any money.

It’s also good to know that you can claim multiple times. If you’re ill or injured, return to work and then fall ill again – you can claim again, and again.

But having a waiver of premium does mean that you’ll pay more for your life insurance cover than if you didn’t choose this add-on. So it’s up to you to balance whether that extra cost is worth the peace of mind for you.

How can I add waiver of premium to my life insurance?

It’s easy to add a waiver of premium rider when you’re setting up your life insurance. Just make sure that the waiver of premium suits your needs, as different providers have different terms.

It’s also important to keep in mind that you can only add it when you’re setting up your life insurance policy. You can’t add it to a life insurance policy that you already have.

There’s quite a lot to think about when you’re deciding about getting a waiver of premium. Each life insurer will have slightly different terms and conditions, so it’s worth weighing up several different options to make sure you choose the right one. And remember that you can only get it when you take out your life insurance, not after.

Here are some of the things to think about:

Waiting periods: You can’t make a claim as soon as you’re off work. All providers set a waiting period, which is the length of time you need to have been off work before you can claim. This could be anything from 4 weeks to 9 months, though 3-6 months is more typical. You can only file your claim and have your premiums covered after this specified time.

Age limits: Most providers will stop the waiver of premium benefit at around retirement age. But the age they specify will be different – for example, some might say 60, while others could say 65 or 70. If this is important to you, it’s worth checking before you take out your cover.

Qualifying criteria: Providers all have slightly different criteria for what counts as incapacity. Some might only cover you if you can’t perform any work, but others might cover you if you’re unable to do your own specific job. Check the terms before you pick the one you want.

How do insurers assess incapacity?

All insurers have slightly different definitions of incapacity and what they’ll pay out for, and they’ll want medical evidence for your condition. Some providers will only let you claim if you can’t work in any kind of job, whereas others will let you claim if you can’t do your normal job. Providers may want to check what tasks you can’t do, like walking, bending, going up stairs or lifting.

So it’s vital to check the terms to see what the waiver of premium covers before you sign up.

If you need to make a claim on your waiver of premium, contact your provider. They’ll explain the process and let you know what you need to do. It’s usually a case of filling out some forms and providing medical evidence.

When you make a waiver of premium claim you may need to supply your life insurer with the following information:

• Your policy number
• Your employment details and occupation
• When you became ill and last worked
• Why you’re unable to work

If you’re not sure if you have a waiver of premium add-on to your life insurance policy, check your policy documents or contact your provider.

How will an insurer decide if you’re unfit to work?

Insurers will generally need medical evidence from you to assess your claim and decide whether you are unable to work. They might want to contact your doctor or other medical professionals who are treating you, as well as your employer. They’d get permission from you before doing this. They also might ask you to have an independent medical examination.

They’d use all this evidence to decide if your illness or injury meets their definition of incapacity before they start paying the claim. You can see what their definitions of incapacity are by checking your policy documents.

Can you be declined for a waiver of premium?

You’ll be assessed for a waiver of premium when you take it out and most people are successful, as long as you’re within the age limits. If you have any existing conditions, these might be added as exclusions. And some insurers might not let you take it out if you have what they consider a high-risk or hazardous job.

There are a few reasons that a waiver of premium claim might not pay out. Every provider has different terms, but generally, most won’t pay out if:

• You don’t meet their particular definition of incapacity
• You’re off because of a pre-existing condition from before you took the policy out
• It’s a self-inflicted injury
• You weren’t working in a paid job when you fell ill or were injured
• You don’t give them the medical evidence they ask for
• You’ve filed the claim too early, before the waiting period is over
• You’ve reached the age limit (eg 60 or 65) that your provider has set and your waiver of premium is no longer valid
• You provided incorrect information when you purchased your policy

Always check the small print

If you’re thinking about adding waiver of premium when you buy a life insurance policy, remember that the cover varies between providers. For example, they all have different waiting periods, definitions of incapacitation and costs. So check out a few providers and read their terms to make sure that the life insurance and waiver of premium rider you get suits your needs.

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How long does a waiver of premium claim last?

Once your claim has been accepted and your premiums are being covered by the waiver, this will usually continue until you’re fit to go back to work and you don’t meet the criteria for ill health anymore.

When you get to retirement age, as defined by the provider, most waiver of premium benefits would stop. It would also stop if your life insurance policy term ends.

You’d need to check your policy terms to see exactly what applies to your waiver of premium.

Is a waiver of premium worth it?

There’s no right or wrong answer as to whether a waiver of premium is worth it for you. Ultimately, it depends on your attitude to risk and your budget.

If you can afford to pay the additional cost you might feel the peace of mind of knowing your life insurance premiums will still be paid if you can’t work because you’re seriously ill or injured is a good trade-off. It means you can focus on getting back on your feet while your life cover remains in place.