I believe "waiver" is the correct term in the insurance context. Can be either temporary or permanent, and be granted due to unemployment, disability, etc.

http://financial-dictionary.thefreedictionary.com/Waiver of ...

Most insurance companies offer graduates, particularly those over fifty-five, a break in premiums.
http://www.mhhe.com/catalogs/sem/hhp/faculty/labs/index.mhtm...
Personnel offices must notify BC when medical coverage is to be cancelled so that the correct adjustments can be made to the individual's or family's coverage records. Cancellation notification should be sent in all cases where there will be a break in premiums.
http://www.pwgsc.gc.ca/compensation/cd/cd-1995-032-e.html
Formal muss die Beitragsfreistellung schriftlich beim Versicherer beantragt werden.
http://www.netscape.de/index.jsp?cid=1657554840&pageId=1&sg=...


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Note added at 20 mins (2006-07-11 00:00:30 GMT)
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alternatively 'payment holiday' e.g. http://www.portfield-financial.co.uk/payment-holiday-mortgag...

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Note added at 32 mins (2006-07-11 00:12:04 GMT)
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OK. Then you're looking for something with 'exemption', 'suspension', 'termination' or 'release'

http://dict.leo.org/ende?lp=ende&lang=de&searchLoc=0&cmpType...

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Note added at 39 mins (2006-07-11 00:19:22 GMT)
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***Paid-up policy***

Alternatively, you may be able to make the policy "paid-up". This means that although you stop paying premiums, you and your family can still enjoy the benefits of the policy in the future, although at a lower level.

http://www.abi.org.uk/Display/default.asp?Menu_ID=1140&Menu_...

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Note added at 4 days (2006-07-15 09:33:33 GMT) Post-grading
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"OK. Then you're looking for something with 'exemption'..." (@ 32 mins)