Can You Stop Paying Premiums After a Critical Illness? Understand How Waiver of Premium Works

After a critical illness diagnosis, you may qualify for a waiver of premium under your policy. First, though, you need to check whether you have this benefit, what triggers it and which premiums it covers.

In the description accompanying her short video, Fynn shares that a client received a critical illness payout and also qualified for a waiver of subsequent premiums. This raises a useful question: does your own policy include a benefit that helps with future premium payments?

What Is a Waiver of Premium?

A waiver of premium benefit helps relieve the burden of specified premium payments when a covered event occurs and the applicable conditions are met. How it operates depends on the policy terms and the insurer’s approval.¹

For example, AIA Malaysia’s A-Life Wealth Builder page lists A-Plus Waiver as an optional benefit relating to the insured person being diagnosed with a covered critical illness or undergoing a covered surgery. The same page lists A-Plus Parent Waiver, which has separate conditions relating to specified events affecting a child’s parent.²

These are examples of different benefits offered by one insurer. They should not be assumed to apply to every policy.

The key questions are: Who must experience the covered event? What must happen? Which premiums are covered, and for how long?

How Is a Critical Illness Payout Different from a Premium Waiver?

The two benefits address different needs:

A successful critical illness claim does not automatically mean you will also receive a premium waiver. Check whether your policy includes the relevant benefit and whether you meet the conditions for each claim.¹

If you are also reviewing your critical illness coverage amount, read Is RM50,000 in Critical Illness Coverage Enough? Start with Your Monthly Expenses (article in Chinese).

Not Every Illness Triggers a Premium Waiver

“You do not have to pay premiums after becoming ill” is an easy way to describe the idea, but the actual conditions need to be checked against your contract.

Feeling unwell, being hospitalised or receiving a medical diagnosis does not, by itself, establish eligibility. You need to review the covered conditions, their definitions, any applicable illness stages, waiting periods and other requirements.

The AIA product page mentioned above lists A-Plus Waiver as an optional benefit. When reviewing your policy, check whether you actually included the relevant coverage.²

“All Premiums Waived”? Check Exactly What Is Included

Even when a waiver claim is approved, clarify:

• Which policy and premium components does it apply to?
• Does it include riders, savings-related premiums or top-up premiums?
• When does the waiver end? Are there age or duration limits?
• How would future premium adjustments be treated?
• After the claim, which benefits remain in force, and which may have been exhausted?

The experience shared in the video description introduces the benefit. Your own entitlement still depends on your policy and the insurer’s approval.

One More Question to Ask During a Policy Review

Alongside “How much would my critical illness policy pay?”, ask:

“Does my policy include a waiver of premium benefit, and what conditions must I meet?”

Also clarify whether you must continue paying premiums while the application is being assessed, when an approved waiver would begin and which documents are required. This helps you understand your responsibilities throughout the process.

If you would like to check whether your existing policy includes this benefit, contact Fynnangel Consultancy. We can review the conditions and scope of your premium waiver together.

References

1. AIA Malaysia: Insurance 101 — Jargons & Terms, Defined
2. AIA Malaysia: A-Life Wealth Builder — Optional Benefits and Terms