What is the purpose of a waiver of premium in health insurance?

The purpose of a waiver of premium in health insurance is to allow policyholders to maintain coverage without paying premiums if they become disabled. This provision is significant because it addresses the financial burden that can arise when an individual is unable to work due to a disability. In such cases, the waiver ensures that the policyholder doesn’t lose their valuable health insurance coverage, thereby providing continued access to medical services during a challenging time.

Maintaining coverage without the obligation to pay premiums helps ensure that policyholders are protected against further financial stress, allowing them to focus on recovery instead of worrying about their health insurance status. This feature can be particularly critical for individuals who rely on their health insurance for necessary medical care and treatment during periods when they cannot earn an income.

Other options do not reflect the main purpose of a waiver of premium. Payment reductions for healthy applicants refer to underwriting practices, while the cancellation of an insurance policy and the increase of benefits during the policy period relate to different terms and provisions that do not align with the waiver of premium concept.