What does waiver of premiums mean in the context of insurance?

In the context of insurance, waiver of premiums refers to a provision that allows a policyholder to maintain their insurance coverage without having to make premium payments if they become disabled or unable to work due to illness or injury. This feature is especially significant in accident and sickness insurance policies, as it ensures that the insured remains protected even during periods of financial hardship caused by their inability to earn an income.

The correct answer highlights that insurance remains active without payments after a specified waiting period. This means that once the waiting period is satisfied—typically defined in the policy—the insured can effectively 'waive' their premium payments, and the policy continues to be in force as long as the insured remains eligible under the terms of the waiver clause. This provision provides peace of mind to policyholders, knowing that they do not need to worry about lapsing coverage during difficult times.

The other options do not accurately describe the nature of the waiver of premiums. For instance, the notion of continued premium payment during a waiting period contradicts the principle of this waiver, while a reduction in premiums or refunds after policy expiration does not align with the intended purpose of keeping insurance active during periods of inability to work.