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This rider ensures that in the event the insured is totally disabled due to an injury or sickness or critical illness, premiums are waived until the insured is able again.

The biggest advantage of this rider is that if the insured is to die during the term of the life insurance policy, the policy remains in force, even during the Auto Cover Period. Premiums that have fallen due and not paid during the Auto Cover Period will also be waived.

The Auto Cover Period is a term of two years during which full death cover continues even if the insured has not paid premiums - subject to at least two full years' premiums having been paid.

Let's look at an example - a person takes the Waiver of Premium rider on his life insurance policy. He pays all his premiums for the first three years. Subsequently, he defaults on his premium payments for the next year and a half. He then dies the next month. Under the Waiver of Premium rider, his life insurance policy remains in force.

During this period, one or more premium installments with interest can be paid without submission of evidence of health.

Usually, the premium paying term for the rider is throughout the benefit period but a few companies restrict the time frame to the policy owner attaining a particular age or for a maximum duration of 25 to 30 years.

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