Premium Protection

In order for your survivors to receive a pay-out from your life insurance provider in the event of your death or diagnosis of a terminal illness you are required to make regular payments known as premiums. Some insurance providers will give you the option of purchasing an extra premium cover or premium protection, sometimes called 'Waiver of Premiums'. This extra cover acts as a form of insurance for your premiums: if you are unable to pay your insurance premiums due to a period of illness or due to an injury resulting in a disability which prevents you from working, premium protection will ensure that you continue to be covered in the event of death of terminal illness.

Without premium protection you will usually have a maximum period of thirty days after the premium was due to be paid in which to make the late payment. Payment protection will usually cover you for an indefinite period of time, until you are able to resume making payments in the normal manner. In exchange for this protection you will be required to purchase extra cover, but your insurance provider may offer to include premium protection in your basic cover if you agree to pay higher premiums.