What is Waiver of Premium Rider in Child Plans?
Updated On Jun 25, 2021
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As a parent, you want your child to have the best of everything whether it's best schooling, higher education, best lifestyle,or marriage. You always wish for the security and protection of your child. These are the most important goals that you as a parent want to achieve in your life for giving a better future to your child. Purchasing Child Plans leads to the solution of every problem related to the child's future. Child Plans promises you to help in achieving the above mentioned goals by giving financial security and protection to your children in unfortunate situations.
A typical Child Plan comes with an investment and insurance feature in which you as a parent acts as an insurer whereas your child acts as a beneficiary. Child Plans include a variety of policies which are available for children below 18 years of age. Child Plans offer regular payouts to your children depending on their major milestones so that you children can receive the money when it is actually needed.
What are Riders?
When it comes to purchasing a child's insurance policy, Riders are the most important part. Riders are the special options which you can add to supplement your Life Insurance Policy by just paying an extra premium. There are a wide array of riders available that you can add to your insurance policy.
Riders provide you accidental death benefit, family income benefit along with many more benefits. However, the waiver of premium rider is the most important rider to opt with a child plan. If in case something unfortunate happens and it makes a policy holder disabled or injured, the waiver of premium rider will keep your policy intact and take care of the future premiums to be paid. Premiums would be paid by the insurance company as long as you remain disabled as per the terms and conditions of the policy.
List of Common Riders Opted WIth Child Plans
There are common life insurance riders which you can include with your child plan:
1. Accidental death & Disability Benefit
This Rider offers an additional death and disability benefit to the nominees of the policy or you if in case of unforeseen situation that leads to death or if you lose a limb or get disabled.
2. Child Term Rider
This Rider provides a benefit of essential expenses in the case of the demise of the child before the particular age.
3. Critical Illness Rider
This Rider provides coverage for a predefined illness in the policy.
4. Term Conversion Rider
This Rider allows you the flexibility for the conversion of a term policy into a whole policy at the end of the policy period.
5. Income Benefit Rider
It makes the child eligible to receive 1% sum assured of the rider every month in the circumstances of death of the parent, permanent disability of the parent, parents having any specified illness pre defined in the policy.
Also Read: Top Reasons To Buy A Child Insurance Plan
Adding a Rider of waiver of premium by spending some extra amount will add a boost to your policy. This rider can ensure you that the policy does not lapse due to the ill-effects of a single unfortunate incident. Through adding riders you can rest assured that your child's future is protected at all times and will take care of your child's needs during difficult times or even when you are not around.
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.