Is Adding a Premium Waiver Rider to a Child Insurance Policy the Best Option?

As a parent, you will always put your children's safety and security first. The first step in preparing your child's future is to secure their financial security with appropriate insurance coverage. When it comes to your child's insurance, riders are extremely important. Riders are extra features that may be added to an insurance policy for a charge. Several riders can be added to an insurance policy. There are several benefits available, such as the accidental death benefit and the family income benefit. When it comes to kid insurance, however, the waiver of premium rider is critical. As a consequence, you may be confident in your child's future.

The Importance of Premium Rider Waiver

A premium waiver is a supplementary option available under kid policies to pay premium costs in the event of an unforeseen incident. Parents are the key policyholders who must pay regular premiums for kid insurance. Consider the following scenario: you, the primary policyholder, are the victim of a tragic incident that makes them incapacitated, wounded, or deceased. In such a case, this rider will ensure that future premiums are waived while the coverage remains. The waiver of the premium rider assures that the policy does not lapse and that the youngster continues to get the protection needed to fulfill his or her dreams.

Advantages of Premium Rider Waiver

It provides several advantages that you should consider while acquiring the plan and its riders.

• Protection against life-threatening diseases

If the parent is diagnosed with a serious illness and does not survive the term, the waiver of premium rider assists in covering the remaining term's premium payments. Cancer, heart attack, renal failure, and vascular disease are among the essential ailments against which the rider provides protection.

• Protection against disability

If the parent becomes handicapped as a result of an accident or other sickness, this rider will ensure that all future premiums are waived. However, for this rider to work, the handicap must last at least 6 months.

• Premiums are inexpensive.

The majority of kid insurance policies have a premium waiver rider. If it is not available, it can be added to the standard cover for a tiny extra charge.

• Flexibility in selecting a rider

Although most kid plans include a premium rider waiver, most policies also allow for its withdrawal or addition as needed. Keeping the rider option, on the other hand, is only useful in times of crisis.

• Tax advantages

Section 80C of the Income Tax Act of 1961 exempts from tax the premium paid for term insurance, including the waiver of premium rider. You are entitled to a tax exemption of up to Rs 1.5 lakh.

Conclusion 

Individual life insurance plans are intended to assist cover expenses such as replacing lost income in the event of your death. If your kid dies while you are covered, a child rider can be added to your policy to provide a death benefit. A Child rider can assist you with paying for your child's funeral if they die. It may also provide you the option to take time off from work. For an extra price, you can enhance your insurance by adding a Rider of premium waiver. This rider ensures that your coverage does not lapse due to a single unlucky incident. By adding riders, you may be certain that your child's future is secure at all times, and that they will take for your child's needs through tough times or even when you are not around.

Also read - Some Considerations Before Purchasing A Money-Back Guarantee