Having a life insurance policy allows you to enjoy a life free of stress and worries, knowing that your family will be looked after at a time when you cannot look out for them. When choosing a life insurance plan, you ensure that the policy provides enough coverage and meets your needs perfectly. However, there is always a small gap in your life insurance plan; to secure this limitation, there are optional riders^# available that can be added to the policy to extend its coverage.

Different riders^# cover several specific situations that are not covered under your life insurance plan. One such rider^# is the waiver of premium rider^#, which waives off or enables you to stop paying the premiums on your policy if you cannot financially support your family due to disablement of a severe and permanent nature.

What is a Waiver of Premium Benefit?

The waiver of premium benefit is a life insurance rider^# that can be added to your life insurance policy for an additional premium cost. Suppose you are faced with a situation where you suffer a permanent disability and are unable to carry out daily activities or provide for your family, the waiver of premium is activated, and all the future premiums for the base life insurance plan will be waived off. This means you need not pay the premiums on your policy once this rider^# is in effect.

However, you and your family will continue to be protected under the life insurance cover since the policy will remain valid. It is important to note that the waiver of premium rider^# can be added to your base life insurance policy only at the time of the policy inception, and its coverage and tenure should not exceed the base policy’s term and coverage. Moreover, the waiver of premium rider^# does not offer any death benefits.

How to Qualify for the Waiver of Premium Rider^#?

Even though the waiver of premium benefit in life insurance is an optional rider^# and can be added to your policy for additional benefits, it is important to note that certain conditions need to be met, following which you can be eligible for the waiver of premium rider^#.

For example, you cannot add this rider^# to your policy and waive off the premiums if you already have a disability.

Let’s take a glance at some more points of eligibility:

• The minimum eligibility age for adding the premium rider^# waiver to your base policy is 18 years or the same age as when you start availing of the life insurance cover.
  
• A waiting period of 48 months, without the diagnosis of any critical ailment, injury or sickness. A medical professional should not give any medical advice or recommend treatment during the waiting period.
  
• The condition of disability should be medically diagnosed and recorded for 12 months from the date of the incident, and the proof of the same should be presented to your insurance provider.
  
• A diagnosis of the disability by a specialised medical professional approved by your insurance provider whose diagnosis confirms that the disability is permanent.
  
  

When tragedy strikes and you and your family need to confront financial hardships to sustain yourselves, the waiver of premium rider^# can help you avoid the burden of paying the premiums on your life insurance policy to safeguard your family. As such, any total and permanent disability can be an emotionally taxing experience, and the stress about finances during this period can take a toll on your mental and physical health.

However, with the waiver of premium rider^#, you can ensure that at least the expense of upholding your life insurance policy is taken care of while you and your loved ones stay shielded under the protection of life insurance.

Features of the Waiver of Premium Plus Rider

While in the case of non-linked riders^#, you need to make premium payments towards upholding the rider^# coverage, the charges of the linked rider^# are adjusted against the units in the unit fund of the base insurance policy.

Hence, when a non-linked waiver of premium rider^# is in effect, all the rider^# premiums and the premiums towards the base policy are waived off. But with the rider,the deductions of the units from the base ULIP policy’s unit fund will cease for the rest of the premium payment term, and all the future premiums on the base policy will also be waived off.

• The waiver of premium rider^# ensures that in the event of permanent and total disability, you do not have to worry about your life insurance premium payments to protect your family.
  
• In the event of total and permanent disability, the rider^# offers comprehensive protection to the policyholder or life assured of the base policy by waiving off all the future premiums.
  
• The linked rider^# offers coverage for a term equal to the Premium Payment Term (PPT) of your base life insurance policy, ensuring maximum protection.
  
• Avail of tax* benefits on the rider^# premium payments under Section 80D of the Income Tax Act, 1961, subject to policy terms and conditions.

 

Conclusion

With the help of the waiver of premium rider^# in your base policy, you can be prepared to face life’s unpredictable moments. Since finances are such an important obligation and a permanent and total disability can hamper this priority, the waiver of premium rider^# ensures that at least you do not have to worry about making your life insurance premium payments during tough times!

L&C/Advt/2022/Nov/2976