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Reasons To Opt For Waiver Of Premium Rider

Published On Dec 03, 2021 10:00 AM By InsuranceDekho

Riders are optional, supplemental terms that are priced separately and apply to an individual’s existing insurance policy. A rider is essentially an addition to an existing insurance policy that adds extra coverage and risk protection. Insurance riders are low-cost add-ons that can be added to an individual’s existing life insurance policy. They supplement and broaden an individual’s insurance coverage to cover more than simply the expense of death.

In the case of unforeseen circumstances such as dismemberment, incapacity, or serious illness as a result of an accident, sickness, or other reason, the premium rider is waived. This rider exempts the individual from paying any future insurance premiums. Apart from that, the policy's core benefits continue to benefit the insured individual's family, which may include bonuses, guaranteed income streams, or fund value growth, depending on the policy's kind. To find out more on waiver of premium rider, read on.

Reasons To Opt For Waiver Of Premium Rider

Following are some of the reasons for an individual to opt for waiver of premium rider -

  • Prevention Of Policy Lapse

The primary benefit of incorporating a waiver of premium benefit rider in a life insurance policy for an insured individual is that it protects the policy from lapse due to non-payment of premiums. It's critical to recognise that an individual cannot file a claim on a life insurance policy that has expired. As a consequence, even if they do not pay the specified premium instalments, this add-on function ensures that their insurance remains valid.

  • Policy Continuation After Death

If an insured individual dies within the policy's term, the majority of life insurance policies will lapse. The predefined death benefit is paid to the nominee of the corresponding covered individual in this situation. Even if one of the following occurrences occurs, if an insured individual applies the waiver of premium rider to their life insurance policy, it will continue to pay out until the end of the policy's term.

  1. The death of the insured individual and the payment of the death benefit to their nominee.
  2. The event of a total or permanent incapacity that prevents an insured individual from paying their premiums on time.

Therefore, a waiver of premium rider in a life insurance policy for an insured individual is always a smart idea.

  • Protection Of An Individual’s Financial Goals

A medical issue may throw an individual’s life into complete disarray, forcing them to fall behind on their financial obligations and abandon their financial goals. As a result of the aforementioned condition, a family may be compelled to cope with extreme financial hardship, as well as major medical bills and emotional anguish. A waiver of premium benefit allows an insured individual to maintain their insurance coverage even if they are unable to pay any further payments.

As a result, the financial goals for which an insured individual purchased coverage are unchanged. If they choose a waiver of premium insurance after investing in the policy to build up substantial funds for their child's educational experience, wedding expenses, or planning for their post-retirement plan, for example, those financial goals can be preserved even if they suffer a permanent disability.

  • Financial Security Of An Individual’s Family

If an individual’s life insurance policy fails owing to non-payment of premiums, the financial security of their respective family may get jeopardised. In this kind of scenario, the waiver of premium life insurance rider allows an individual to preserve their family's financial future even if they are unable to pay more premium payments to their life insurance policy. It's also worth noting that a critical illness waiver of premium rider can safeguard an individual from being unable to pay their premiums after being diagnosed with a critical illness.


It is always a smart option to include a waiver of premium rider in an individual's life insurance policy because of the numerous benefits that a waiver of premium rider provides. This feature makes an insured individual’s policy more comprehensive and helps them secure their family's income in the event of a permanent disability or major sickness, in addition to providing life insurance.

Also read: Why Should You Choose A Critical Illness Rider?

Top Life Insurance Riders You Must Consider

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.

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