When we talk about insurance, premium is an inevitable part, it is the fee we pay to the insurance company in exchange for insurance protection. However, sometimes life has unexpected events and people suddenly fall into financial difficulties, such as cancer that requires long-term treatment, or disability that prevents them from working. At this time, premiums may become a huge burden. At this time, the concept of "premium exemption" that we are going to talk about today comes into use.

What is Premium Waiver?
Simply put, premium waiver is a service provided by an insurance company. When the insured (referring to the target of insurance protection) is unable to work or has a reduced income due to illness or accident, your policy will be covered for a period of time from then on. You are exempt from paying premiums for a certain period of time, but you can still enjoy insurance protection at the same time. This is a very considerate arrangement that allows you to maintain protection in difficult times without having to worry about the insurance being inactive due to failure to pay the premium.

As for the period of premium exemption for each insurance company, please refer to the terms of each insurance product and the official explanation of each insurance company as a basis.

If some insurance companies have additional premium exemptions, once the contract exemption conditions are met and an application is made, premiums will not be paid from then on.

Article 9

If the insured is diagnosed by a hospital doctor as suffering from one of the major diseases or specific injuries and illnesses stipulated in Article 2 during the validity period of this addendum, the company will waive the insurance premiums payable for each subsequent period from the date of the insured event. (Including the insurance premium of the main contract and its attached addendum), this addendum continues to be valid.

Take the clause of Taiwan Life as an example. If there is an additional premium exemption, once an exemptable accident occurs and an application is made, no premium will be paid from the occurrence to the expiration of the payment period.

Article 12

If the insured meets one of the following circumstances during the validity period of this addendum, the company will waive the renewal of the contract as stipulated in Article 2, Paragraph 10 of this addendum starting from the latest premium payable date after the date of diagnosis and confirmation of compliance. The insurance premium is payable until the expiration of the insurance period of this rider.

Article 2

⋯⋯(omitted)⋯⋯
2. The "insurance period" referred to in this addendum refers to the payment period of the main contract.

Who is exempted from premium exemption?
Conditions for initiating premium exemption
The situation where the premium exemption applies is usually when the insured (referring to the target of insurance protection) is unable to work normally or earn income due to health problems or accidents. This includes serious illnesses, injuries, or situations that require long-term recuperation. For example:

died
Incapacitation (there are 11 levels of disability in total, and exemption insurance usually limits the level range, such as level 1-6 disability exemption or level 1-8 disability exemption)
Serious illness or special illness or injury
cancer
When the condition of the insured meets the conditions stipulated in the insurance contract, the insurance company will start to implement exemptions according to the contract content, and the premiums starting from the next period will not be paid, and the insurance company will help cover it.

How is the "premium" of "premium waived" calculated?
The calculation method of general insurance product premiums is usually based on the health status of the insured (referring to the target of insurance protection) and the details of the insurance contract. When you buy insurance, the insurance company will evaluate the risk based on your age, health and other factors, and calculate the corresponding premium. However, the premium exemption will not only calculate the premium on the basis of the insured person, but also calculate the premium for the exemption of additional clauses based on the payment period of the main contract or rider. Therefore, the calculation is relatively complicated. The actual premium recommendation is based on the official final calculation results of the insurance company.