Waiver of premium keeps the policy alive when you cannot pay

This works through waiver of premium in the order the parts actually depend on each other.

The failure it prevents

Term life and critical illness cover lapse if premiums stop, and there is generally nothing to surrender. The most likely reason premiums stop is loss of income, and the most likely cause of that is illness. That means the policy is most likely to fail at precisely the moment its risk of claiming has risen.

Waiver of premium closes that loop for a small additional cost.

How it operates

After a deferred period of continuous incapacity, commonly three or six months, the insurer pays the premiums for you. The policy continues in full force, and cover is unaffected.

Payment continues while incapacity lasts, up to the end of the term or a stated age. The benefit is the premium itself rather than any payment to you.

The definition question returns

Waiver benefits use the same incapacity definitions as income protection: own occupation, suited occupation, or activities of daily living. An own-occupation waiver is far more likely to pay than one requiring inability to do any work.

A cheap rider with a strict definition may not respond in the circumstances you expected. Ask which definition the waiver uses, since it is rarely stated in a quote summary.

Cost and availability

It is typically a small percentage addition to the premium, which makes it inexpensive relative to the loss it prevents. It is usually only available at outset, so adding it later may require a new policy. Some insurers include it as standard on certain products, which is worth checking before paying for it separately.

Occupation affects both price and availability, as it does for income protection.

Where it overlaps other cover

Someone with comprehensive income protection may find waiver largely duplicative, since the income would fund the premiums. Someone relying on savings or short employer sick pay has a real gap that waiver fills cheaply. The right answer depends on what else is in place, which is a household-specific question.

That makes it a sensible point to raise with a regulated adviser rather than to decide from a general rule.

Adjust the size of it until it is something you would actually do tired.

Related riders worth knowing

Terminal illness benefit, which pays the sum assured on a diagnosis with a limited prognosis, is included as standard on most term policies. Some products include a limited children's critical illness benefit without extra premium. Others offer separation options that split joint cover into two policies without underwriting.

On an ordinary week, these are frequently present and almost never used, largely because policyholders do not know they hold them.

The takeaway

The cheapest way to lose protection cover is to stop paying for it while ill. This rider prevents that.

Pick the one that costs you least, and let the rest wait.