Difference Between Waiver of Premium and Income Benefit Rider

The Waiver of Premium Rider and The Income Benefit Rider are the two most sought after and commonly bought riders in recent years due to the benefits of extra protection and coverage they provide to the insured person and his family. To know more about these two riders, read on. 

All About Waiver of Premium Rider

A Waiver Of Premium Rider is an insurance policy clause that waives premium payment if the policyholder is very ill, injured or incapacitated is an exemption from the premium rider. Specific health and age requirements may also be fulfilled. Policy owners may wish to purchase a waiver if, for example, they are worried about life as they grow old. 

Policyholders usually add the rider to a life insurance policy for an optional or supplementary benefit. The costs vary by claimant and insurance company. In general, insurance firms add to the price the rider price or impose an initial fee. This fee increases the cost of a policy for life insurance that can be taken into account before purchasing.

The majority of exemptions for premium riders include a period in which no claim can be made. If the person who has been disabled or hurt is entitled to get full reimbursement of paying premiums for the expectations term. The expected risk of the insurer would dramatically increase without a waiting period and could lead to severe losses.

Highlights Of The Waiver of Premium Rider

• An optional insurance policy clause for waiver of premium rider waives insurance fees if the policyholder becomes extremely ill or incapacitated.

• You may need to meet specific conditions for age and health in order to buy a premium rider waiver.

• The rider has a supplementary fee in an insurance policy.

• If you are already disabled or have a pre-existing ailment, you can't acquire a premium rider waiver.

All About Income Benefit Rider

The Income Benefit Rider states that in the event of accidental death or disability, this rider offers further coverage which is paid on a monthly basis to the insured person or his family, whoever is concerned. 

This rider is selectable either at the beginning of the policy or at the anniversary of the policy, together with the basic plan for a small premium*, provided that this rider fits the terms of eligibility. *Premium shall not be higher than 30% of the base plan premium provided that premiums are paid by all life insurance riders.

Highlight of The Income Benefit Rider

• On death from an insured life due to an accident or on the life of a fully and permanently crippled rider, a 1 percent of Sum Assured shall be paid on a monthly basis, by the end of the rider's term, or for a period of 10 years, depending on the date of an accident, whichever is greater.

• The disability compensation is automatically cancelled in accordance with the policy.

• Nothing is payable until survival until the conclusion of the rider's tenure.

• The rider's benefits shall only be paid if the base plan is in force. If the base plan is terminated or stopped, the rider benefit will cease immediately. The advantage of the cyclist also stops.

• This rider ensures consistent payments for your whole lifetime of income from your annuity. In fact, even if your corpus is totally spent, you will receive those income payments!

Take Away

Adding the respective riders, Waiver of Premium and Income Benefit rider ensures that you will get the best benefits from your policy even in the most adverse situations. Do consider adding these riders to your insurance policy to gain more coverage.

Also Read:

Whole Life Insurance Policy: Compare Whole Life Plans Online

How To Make A Death Claim Under Your Life 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.