What is waiver of premium in SAP FS-PM - Policy Management?

SAP Term: waiver of premium

• Component: FS-PM

• Component Name: Policy Management

• Description: Personal insurance: Reorganizing of a contract so that premiums do not have to be paid; for example, when a single premium is paid or an insurance policy is converted to a premium-exempt insurance policy, or if the premium payment duration agreed to in the policy product has expired. Property insurance: Reorganizing of a contract so that the insurer continues to assume liability, but does not receive payment of the premium.

Smart SAP Assistant

• Key Concepts: 
  Waiver of Premium is a feature in the FS-PM Policy Management component of SAP that allows policyholders to suspend their premium payments for a certain period of time due to certain circumstances. This feature is typically used when policyholders are unable to make their premium payments due to illness, disability, or unemployment. 
  
  How to use it: 
  In order to use the Waiver of Premium feature, policyholders must first submit a request to their insurer. The insurer will then review the request and determine if the policyholder is eligible for the waiver. If approved, the policyholder will be able to suspend their premium payments for a certain period of time. 
  
  Tips & Tricks: 
  It is important to note that the Waiver of Premium feature does not cover all types of policies. It is important to check with your insurer to see if your policy is eligible for this feature. Additionally, it is important to note that the waiver may not cover all of the policyholder’s premiums and may only cover a portion of them. 
  
  Related Information: 
  The Waiver of Premium feature is just one of many features available in the FS-PM Policy Management component of SAP. Other features include premium calculation, policy renewal, and claims management.