What is the term for voluntarily giving up a known right?

The term for voluntarily giving up a known right is referred to as a waiver. A waiver occurs when an individual or entity intentionally relinquishes a right or privilege that they are entitled to, often through explicit acknowledgment or behavior that suggests the right is no longer being enforced or exercised. In legal and insurance contexts, waivers can be critical, as they may impact the rights to claims, benefits, or other entitlements.

Understanding the concept of a waiver is essential, particularly for life insurance producers, as it can influence policyholders' rights and how policies are executed or enforced. For example, if a policyholder fails to act on a benefit they are entitled to, and they've signed a waiver, they may lose that benefit. This gives weight to the significance of knowing when rights are waived and the implications of such decisions in a contractual context involving insurance products.