What happens to premium payments during the waiver of premium period?

During the waiver of premium period, the premiums that would typically be paid by the policyholder are credited to the policy for benefits. This waiver provision is a key feature of some life, accident, and health insurance policies. It allows the policyholder to skip premium payments while still keeping the coverage in effect, typically due to certain circumstances such as total disability.

While the premiums are not actively paid during this period, the insurer acknowledges that the policyholder is still entitled to the full benefits under the policy. By crediting these premium amounts, the insurer ensures that the policy remains in force and continues to accumulate cash value or have death benefits available, depending on the nature of the policy. This mechanism provides financial relief during difficult times and helps policyholders maintain their coverage without the risk of policy lapsation due to non-payment of premiums.