How Waiver of Premium Works
If you add waiver of premium to a life insurance, CIC, or income protection policy, and you become unable to work due to illness or injury:
- Your premiums are paid by the insurer
- Your policy remains fully in force
- You continue to be covered without paying anything
Most waivers kick in after a deferred period (typically 13–26 weeks off work).
Is Waiver of Premium Worth It?
| Scenario | Value of Waiver |
|---|---|
| You have income protection | Lower – IP already replaces income to pay premiums |
| You have life or CIC but no IP | Higher – stops policies lapsing if you cannot work |
| Self-employed, no sick pay | Higher – any financial relief during illness is valuable |
| Long-term health concerns | Consider carefully |
Verdict: If you have comprehensive income protection, waiver of premium on life/CIC adds less marginal value. If you have life or CIC but no IP, it is a low-cost safety net worth considering.
How Much Does It Cost?
Waiver of premium typically adds 5–15% to your premium. On a £20/month policy, that is £1–£3/month extra. It is one of the more affordable add-ons.
Frequently Asked Questions
Stops premiums if you can't work, keeping your policy active at no cost during illness.
Worth it without IP. Less valuable if you have IP (which already covers all bills).