Life Insurance 488 views August 17, 2021

Premium Waiver Benefit Rider waives off life insurance premium payments in case the life assured is diagnosed with any of the covered critical illnesses or gets disabled due to an accident. This is an optional insurance policy that can be added to the base policy upon additional payment. You cannot get the rider benefit if you are already disabled or have a pre-existing critical condition. Read this page further and learn more about the benefits of the Premium Waiver Benefit Rider and the top plans offering this facility in India.

Advantages of Premium Waiver Benefit Rider Cover

If you add the Premium Waiver Benefit Rider to your base plan, you’ll get the following benefits:

Base Policy Benefits to Continue

You’ll continue to receive the base policy benefits in case you file a claim under this rider. So, in case of your death or policy maturity, the benefits, as mentioned in your policy schedule, will be payable.

No Further Premium Payment Needed

Once a claim is filed under this rider and the same is accepted by the insurer, there is no need to pay the premium.

Participation in profits

Any bonus/loyalty additions (if any) under the base plan shall continue to accrue even after filing a claim under this rider.

To file a claim under this rider, you need to submit the physician’s statement confirming the disability/critical illness. You need to send the required document along with the duly filled claim form to the insurer.

The List of Top Premium Waiver Benefit Rider Plans

The following are some of the popular Premium Waiver Benefit Rider Plans. Check out them below.

Max Life Waiver of Premium Plus Rider

This rider provides a waiver for all future premiums in case any of the following events happen earlier, provided the base policy and the rider is in force:

  • Critical Illness
  • Dismemberment
  • Death (If Life Insured and Policyholder are different individuals)
    Upon filing a claim under this rider, future premiums shall be waived.

In case of termination or surrender of the base policy, the following benefits are payable:

  • All applicable benefits under the base policy
  • Present value of the future Premium (including rider premium, if any) to be waived, discounted at the rate of 6.5% p.a

Bharti AXA Life Premium Waiver Rider

Bharti AXA Life Rider offers a waiver of future premiums in case of an unfortunate event like the diagnosis of a critical illness, death and permanent total disability. Under this plan, you will get two premium waiver options:-

Option 1 – Waiver of premium in case of death or permanent total disability. In case of disability, the same must persist for a continuous period of 180 days and be confirmed by a medical practitioner appointed by the company.

Note: The permanent total disability will only be accepted if it has occurred after 90 days from the date of issuance or revival.

Option 2 – Waiver of premium in case you are diagnosed with any of the following critical illnesses during the policy term.

  • First Heart Attack -Of Specified Severity
  • Open Chest CABG
  • Kidney Failure Requiring Regular Dialysis
  • MajorOrgan/Bone MarrowTransplant (Kidney, Liver, Lung and Heart)
  • Open Heart Replacement or Repair Of Heart Valves
  • Stroke Resulting in Permanent Symptoms
  • Coma of Specified Severity
  • Multiple Sclerosis with Persisting Symptoms
  • Cancer of Specified Severity
  • Permanent Paralysis of Limbs
  • Benign Brain Tumour

Note – The above-mentioned critical illnesses should have been diagnosed after 90 days from the date of issuance or revival of the policy. The survival period is 30 days following the date of diagnosis of critical illness.

HDFC Life Waiver of Premium Benefit

If you become disabled due to an accident, HDFC Life Insurance will waive the premiums for the policy, provided you have submitted satisfactory evidence regarding the same. You need to submit the following documents:

  • Duly filled claim form
  • Original policy document
  • Medical reports on the disability and its treatment
  • Original certificate from the employer confirming that you have suffered and continue to suffer a total disability

Note: Depending on the circumstances the insurer may ask you to provide further documents.

The insurer shall continue to waive the premiums until any one or more of the following occurs:

  • Recovery of the Life Assured
  • Maturity or earlier termination of the policy
  • Premium due date coinciding with the Life Assured’s 60th birthday
    Death of the Life Assured.

The Life Assured will be considered disabled if he/she is unable to carry out any occupation. If within 26 weeks of recovery from any disability, the Life Assured is again disabled due to the same illness or injury, the insurer will treat the further disability as a continuation of the preceding period of disability.

LIC’s Premium Waiver Benefit Rider

In case of the death of the proposer before the policy expiry, premiums payable under the Base Policy shall be waived off. However, any premiums in respect of any other riders, if opted under the Base Policy, shall not be waived and continued to be paid as per respective rider conditions.

If a claim under LIC’s Premium Waiver Benefit has been admitted, the insurer shall charge no subsequent premium towards this rider. The additional premium charged in respect of this rider shall not be considered to determine the Death Benefit of the Base Policy and calculate the surrender value of the Base Policy.

Note: If the premium paying term of the Base Policy exceeds the Rider Term, the life assured will need to pay all the premiums due under the Base Policy from the date of expiry of this Premium Waiver Benefit Rider.

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