Is Waiver of Premium Rider Essential While Buying Child Insurance?

A waiver of premium rider is an optional coverage that may be added to your life insurance policy to increase its value. Even if you are not there, this add-on ensures that your child continues to benefit from all of the plan's benefits. In the event of an unanticipated incident, a premium waiver is a supplemental option available under Child plans to reimburse premium costs. Parents are the primary policyholders who must pay child insurance premiums on a regular basis. 

Consider the following scenario: you, the principal policyholder, are injured, killed, or incapacitated as a result of a sad event. In this situation, the rider ensures that future premiums are eliminated as long as the coverage is maintained. The premium rider waiver ensures that the policy does not lapse and that the Child continues to receive the protection he or she requires to pursue his or her goals.

Benefits Of Premium Rider Waiver 

It has a number of benefits that you should think about while purchasing the plan and its riders.

1. Defend Yourself Against Infections That Can Kill You

The waiver of premium rider assists in covering the remaining term's premium payments if the parent is diagnosed with a serious illness and does not survive the term. Cancer, heart attack, renal failure, and vascular disease are just a few of the serious illnesses that the rider protects you from.

2. Protection From Disabilities

This rider ensures that if the parent becomes disabled as a result of an accident or other illness, all future premiums are waived. The handicap must, however, last at least 6 months for this rider to work.

3. Premiums Are Reasonably Priced

A premium waiver rider is included in the majority of child insurance policies. If it isn't already included with the standard cover, it can be added for a little fee.

4. Ability To Choose A Rider With Some Flexibility

Despite the fact that most Child plans have a premium rider waiver, most policies allow for its removal or addition as needed. Maintaining the rider option, on the other hand, is only beneficial in emergency situations.

5. Advantages in Terms of Taxes

The premium paid for term insurance, including the waiver of premium rider, is tax-free under Section 80C of the Income Tax Act of 1961. A tax exemption of up to Rs 1.5 lakh is available to you.

Conclusion

Individual life insurance policies are designed to help cover costs such as replacing lost income if you die. A child rider can be added to your policy to pay a death benefit if your child dies while you are covered. If your child dies, a Child rider can help you pay for their funeral. You may also be able to take time off work as a result of it. You can add a Rider for premium waiver to your policy for an additional cost. This rider ensures that your coverage does not lapse as a result of a single unfortunate occurrence. By including riders, you may be assured that your child's future is secure at all times and that they will look after your child's needs even if you are not present.

Also read - Types of Child Insurance Plans: All the Important Aspects!

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.