Understand The Benefit Of Adding Waiver Of Premium Rider To Child Insurance Plan
Updated On Jan 22, 2022
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A kid insurance plan works as both an investment and an insurance policy, allowing you to plan for your child's financial future, such as higher education at the appropriate age. The first step in securing your child's financial future is to ensure that they have enough insurance coverage. Riders are incredibly crucial when it comes to your child's insurance. Riders are optional features that can be added to a policy for an additional fee. An insurance policy can include several riders. The accidental death benefit and the family income benefit are two of the benefits provided. However, when it comes to child insurance, the waiver of premium rider is essential. As a result, you may have faith in your child's future.
Waiver of Premium Rider's Meaning
A waiver of premium rider is an optional coverage that may be purchased to boost the value of your life insurance policy. This add-on ensures that your child continues to receive all of the plan's benefits even if you are not there. In the event of an unanticipated event, such as injury or disability as a result of an accident, the waiver of premium add-on covers all future premiums that must be paid. It also ensures that any premiums paid are waived if the lone earning member dies as a result of an injury or illness.
Benefits of Adding Waiver of Premium
Under the waiver of premium add-on cover, the following benefits are available:
1. Future Premiums Are Waived:
In the event of death, critical illness, or total and permanent disability, all future premiums are waived, and you will not be required to pay any future premiums towards your insurance plan.
2. Protection Against Critical Illness, Death, or Total Permanent Disability:
If a parent is diagnosed with a critical illness such as kidney failure, cancer, or a heart attack and dies prematurely during the plan's term, the child can use the waiver of premium rider add-on to help cover the remaining premium amount.
3. Tax Benefits:
You may be eligible for a tax benefit on premiums paid against a term insurance plan, as well as a premium add-on waiver. Section 80C of the Income Tax Act exempts the premium paid to riders from tax up to a limit of Rs 1,50,000.
4. Plan Does Not Lapse:
The addition of a waiver of premium add-on assures that your insurance plan does not lapse due to an unanticipated event. You may always be worry-free about your child's future with this add-on added to your normal insurance coverage.
5. Budget-Friendly Premium Rates:
Several insurance firms offer a child insurance policy with a built-in premium waiver add-on. In the case that the present base plan is unavailable, this can be added to it.
If your child dies, a Child rider can help you pay for their funeral. You may also be able to take time off work as a result of it. You can add a Rider premium waiver to your policy for an additional cost. This rider ensures that your coverage does not lapse as a result of a single unfortunate occurrence. By including riders, you may be assured that your child's future is secure at all times, and that they will look after your child's needs even if you are not present.
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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.