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What Is The Benefit Of Buying A Premium Waiver Rider?

Published On Feb 05, 2022 11:46 AM By InsuranceDekho

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.
In the case of unanticipated circumstances such as dismemberment, incapacity, or major sickness as a result of an accident, disease, or other cause, the premium rider is waived. With the exception of the rider that absolves a person from paying future insurance premiums. Depending on the policy's kind, the major advantages, that may comprise of bonuses, guaranteed income streams, or fund value increase, will benefit the insured individual's family. To know more about the benefits of buying premium waiver rider, read on.

What Is The Benefit Of Buying A Premium Waiver Rider?

What Are The Benefits Of Buying A Premium Waiver Rider?

Following are some of the benefits of buying a premium waiver rider -

1. Waiver of Premium Rider Gives Financial Protection Against Life's Uncertainties - The waiver of premium rider provides financial protection to the life assured and his or her loved ones against life's uncertainties. All future premiums will be waived if the life guaranteed dies in an accident during the policy term. All future due premiums will be waived if the life guaranteed is diagnosed with a serious illness. This rider offers financial protection against life's uncertainties, such as the early death of the life guaranteed, both naturally and accidentally, accidental complete and permanent incapacity, or critical disease diagnosis.

2. Policy Continuance - When the premium rider is waived, the policy remains in force well after the life guaranteed has died. If the life assured dies, suffers an accidental complete and permanent disability, or is diagnosed with a serious disease during the policy term, the waiver of premium rider will waive all future payable premiums. The insurance company will pay all future payments on the life insured's behalf and keep the policy active, allowing the nominee to take advantage of the policy's benefits. The cancellation of the premium rider secures the policy's continuation.

3. Affordable Premium Rates - To expand the policy's coverage, a waiver of premium rider can indeed be done concurrently of policy issuance in return for an extra premium. The waiver of premiums has a low price, and it extends the capacity of protection of the base insurance at a low cost.

4. Tax Rebates - Adding a waiver of premium rider to your term insurance policy might provide a tax benefit to the life guaranteed. Tax exemptions are available for premiums paid to riders. Section 80C of the Income Tax Act of 1961 allows the life guaranteed to claim tax exemptions. Riders are entitled for a tax exemption of up to Rs 1.5 lakhs under Section 80C of the Income Tax Act, 1961.

5. Removes the Need for Extra Insurance - As previously said, the waiver of premium rider offers the life guaranteed with financial protection against life's uncertainties, removing the need for an additional policy. This rider guarantees that the policy is maintained long after the life guaranteed has died, as well as providing cash aid in tough circumstances. When this rider by itself can obviate the requirement for a further policy, life assurance may well not require an extra policy to protect the economic security of his or her family.


Due to the obvious multiple benefits it provides, a waiver of premium rider is typically a smart option to add in a person's life insurance policy. In addition to providing life insurance, this provision ensures an insured individual's policy is more comprehensive as well as assists them guarantee their family's income in the case of a long-term disability or catastrophic sickness.

Also read- Life Insurance Riders And Their Features

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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