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What Are The Benefits Of A Premium Rider Waiver?

Updated On Mar 02, 2022

A rider is a type of insurance policy that extends the coverage and risk protection of an existing policy. Riders are optional conditions that are priced separately and apply to a person's existing insurance policy. Riders to a person's existing life insurance policy are low-cost extras. They are designed to augment and widen a person's insurance coverage in order to give benefits other than death.
A rider is a form of insurance policy which enhances an existing policy's scope and damage control. Riders are additional restrictions which attach to something like an user's existing insurance policy and thus are billed independently. Riders to an existing life insurance policy are inexpensive add-ons. They're intended to supplement and broaden a person's insurance coverage to provide benefits apart from dying. To get to know more about the benefits of a premium rider waiver, read on.

What Are The Benefits Of A Premium Rider Waiver?

What Benefits Does Having A Premium Rider Waiver Serve?

Following are some of the listed benefits served in having a premium waiver rider -
Waiver of Premium Rider Gives Financial Protection Against Life's Uncertainties - The waiver of premium rider protects the life insured with his or her loved ones from the financial consequences of reality's difficulties. If indeed the life assured dies in a catastrophe during the insurance duration, all further premiums will be waived. If the life assured is diagnosed with severe disease, all future premiums will be waived. This rider provides compensation over life's risks, such as assured early death, both naturally and unintentionally, accidental total and permanent disability, or severe disease diagnosis.
Policy Continuance - When the premium rider is removed, the insurance continues in effect even after the life assured has passed away. The waiver of premium rider waives all future payable premiums if the life guaranteed dies, experiences an accidental total and permanent incapacity, or is detected with a serious sickness during the policy term. The insurance company would make all subsequent transactions on behalf of the life insured and maintain the policy active, enabling the nominee to use the policy's benefits. The deletion of the premium rider ensures that the insurance will be renewed.
Affordable Premium Rates - In exchange for an additional premium, a waiver of premium rider can be purchased concurrently with the policy issue to enhance the policy's coverage. The waiver of premiums is inexpensive, and it increases the basic insurance's health and safety regulation at a low cost.
Tax Rebates - Including a waiver of premium rider in your term insurance policy may result in a tax incentive for the life assured. Premiums paid to riders are eligible for tax exemptions. Section 80C of the Income Tax Act of 1961 permits the life insured to seek tax exemptions. Section 80C of the Income Tax Act of 1961 allows riders to claim tax rebates of up to Rs 1.5 lakh.
Removes the Need for Extra Insurance - As already said, the waiver of premium rider provides financial security against life's uncertainties to the life assured, eliminating the need for a separate policy. This rider ensures that perhaps the policy is kept well after the life assured has passed away, as well as offering financial assistance in difficult times. When this rider can eliminate the need for a separate policy, life assurance might not always require an additional policy to secure his or her family's financial stability.


A waiver of premium rider is often a wise addition to a person's life insurance policy because of the numerous benefits it delivers. This clause guarantees that an insured individual's policy is much more extensive and that their family's income is guaranteed in the event of a long-term incapacity or catastrophic illness, as well as provide life insurance.

You may also like: Is It Really Necessary To Have Riders With Term Insurance?

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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