All About Waiver of Premium Rider
Updated On Apr 26, 2021
Table of Contents
What Is Waiver of Premium Rider?
Waiver of Premium rider is an additional coverage purchased along the base policy at the time of policy issuance. This rider waives off all the future premiums of the life insurance policy if the life assured suffers disability in an accident, making the life assured unable to make a living and pay future premiums for their life insurance policy. This rider offers policy continuance as all the future premiums get waived off and insurance companies pay the premium themselves, at the time of plan maturity the benefit amount is paid to the nominee. Waiver of premium rider usually comes with Accidental Total and Permanent Disability rider or with the Critical Illness rider.
How Does Waiver of Premium Rider Work?
Under waiver of premium rider, in case the life assured suffers disability in an accident and is not able to work and make a living, all the future payable premium gets waived off.
In case the life assured is diagnosed with a critical illness such as heart attack, cancer, kidney failure etc. all the future payable gets waived off. The premiums are paid by the insurance provider itself and the policy continues. The benefit amount is paid to the nominee at the time of plan maturity.
Read More: Benefits Of Enhancing Your Life Insurance With Riders
Reason To Purchase Waiver of Premium Rider
Waiver of premium rider is very useful in desperate situations such as if the life assured suffers a total and permanent disability in an accident or is diagnosed with a critical illness all the future payable premiums get waived off. With this rider the policy continues even if the life assured is not able to work and make living hence not being able to pay the due premiums. The life assured can also avail tax benefits as premiums paid towards life insurance riders qualify for tax exemption under Section 80 C of Income Tax Act, 1961.
Eligibility For Waiver of Premium Rider
Following are the eligibility criteria for waiver of premium rider:
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Eligibility Criteria For Waiver of Premium Rider |
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Parameters |
Eligibility |
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Minimum Entry Age |
18 years |
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Maximum Entry Age |
65 years |
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Maximum Maturity Age |
70 years |
