Is a Premium Waiver Rider the Best Option For A Child Insurance Policy?

As a parent, you will always prioritize the protection and security of your children. The first step in planning your child's future is to ensure their financial stability with adequate insurance coverage. Riders are incredibly crucial when it comes to your child's insurance. Riders are optional extras that may be added to an insurance policy for a fee. An insurance policy can be supplemented with a number of riders. There are a variety of benefits offered, including an accidental death benefit and a family income benefit. However, when it comes to child insurance, the waiver of premium rider is crucial. As a result, you may be optimistic about your child's future.

The Significance of a Premium Rider Waiver

A premium waiver is an additional option provided under child insurance to cover premium payments in the case of an unanticipated occurrence. Parents are the primary policyholders who must pay child insurance premiums on a regular basis. Consider the following scenario: you, the principal policyholder, are the victim of a sad event that renders you incapable, injured, or death. In such an event, this rider ensures that future premiums be waived as long as the coverage is maintained. The waiver of the premium rider ensures that the insurance does not lapse and that the child continues to get the necessary protection to pursue his or her aspirations.

Features of Premium Rider Waiver

It offers various benefits that you should consider while purchasing the plan and its riders.

Protection against potentially fatal illnesses

If the parent is diagnosed with a serious disease and dies before the end of the term, the waiver of premium rider helps to cover the remaining term's premium payments. Cancer, heart attack, renal failure, and vascular disease are just a few of the serious illnesses against which the rider protects you.

Protection against disability

This rider ensures that if the parent becomes disabled as a consequence of an accident or other illness, all future premiums are waived. However, in order for this rider to be able to work, the handicap must persist at least 6 months.

Premiums are reasonably priced.

A premium waiver rider is included in the majority of child insurance plans. If it is not available, it can be added for a little fee to the regular cover.

Ability to choose a rider 

Although most child plans feature a premium rider waiver, most policies enable for its removal or addition as required. Keeping the rider option, on the other hand, is only beneficial in emergency situations.

Benefits from taxation

The premium paid for term insurance, including the waiver of premium rider, is free from tax under Section 80C of the Income Tax Act of 1961. You are eligible for a tax break of up to Rs 1.5 lakh.

Conclusion

Individual life insurance policies are designed to help cover expenditures such as lost income in the case of your death. A child rider can be added to your policy to pay a death benefit if your child dies while you are covered. If your kid dies, a Child rider can help you pay for their funeral. It can also provide you the option of taking time off from work. You can supplement your insurance by adding a Rider of premium waiver for an additional fee. This rider guarantees that your coverage does not lapse as a result of a single unfortunate event.

Also Read: In India, how do you buy child plans online?

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.