Reasons To Add Waiver Of Premium Rider To My Term Insurance Policy?
Updated On Jan 31, 2022
Riders are supplementary terms that are charged individually and apply to an individual's current insurance policy. A rider is a type of insurance policy that adds additional coverage and risk protection to an existing policy. Riders are low-cost additions to a person's current life insurance policy. They add to and widen a person's insurance coverage to cover more than just the cost of death. The premium rider is waived in the event of unanticipated events such as dismemberment, disability, or significant illness as a consequence of an accident, sickness, or other cause. This rider relieves the individual of any future insurance premium payments.
Why Should You Choose Premium Rider Waiver?
Some of the reasons why a person could choose to waive the premium rider include the following:
- Preventing Policy Failure
The primary benefit of inserting a waiver of premium benefit rider in a life insurance policy for an insured individual is that it prevents the policy from lapsing due to nonpayment of premiums. It's critical to recognize that a claim on a life insurance policy that has already expired cannot be filed. As a result, even if they do not pay the stipulated payment installments, this add-on function ensures that their insurance is valid.
- After-Death Policy Continuation
The majority of life insurance policies will lapse if an insured person dies during the policy's term. In this circumstance, the predetermined death benefit is paid to the nominee of the relevant insured individual. If an insured person adds the waiver of premium rider to their life insurance policy, it will continue to pay out until the end of the policy's term, even if one of the following events occurs.
The insured person's death and the payment of their death benefit to their nominee.
The occurrence of a total or permanent infirmity that precludes an insured person from making timely premium payments.
As a result, adding a premium waiver rider to a life insurance policy for an insured person is always a good idea.
- The Safeguarding of a Person's Financial Objectives
A physical problem may throw a person's life into turmoil, causing them to fall behind on their bills and abandon their financial ambitions. A family may be forced to struggle with great financial difficulty, as well as large medical expenditures and mental suffering, as a result of the aforementioned disease. A premium waiver allows an insured person to keep their insurance coverage even if they are unable to make any further payments. As a result, the financial objectives for which an insured person purchased coverage remain unaffected.
- The Family's Financial Well-Being
The financial security of an individual's family may be jeopardized if their life insurance policy fails due to the nonpayment of premiums. In this situation, a waiver of premium life insurance rider allows a person to protect their family's financial future even if they are unable to make additional premium payments to their life insurance policy. A critical illness waiver of premium rider can also protect a person from being unable to pay their premiums after being diagnosed with a critical illness.
Due to the general numerous benefits that a waiver of premium rider provides, including one in an individual's life insurance policy is always a good idea. In addition to providing life insurance, this provision makes an insured person's policy more comprehensive and helps them guarantee their family's income in the case of a prolonged disability or catastrophic illness.
Also read- What Is A Life Insurance Rider?
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.