Why Should I Include A Waiver of Premium Rider In My Term Insurance Policy?

Riders are additional coverages that are priced separately and get added to an insured’s current insurance policy. A rider is a form of insurance policy that supplements an existing policy with additional coverage and risk protection. Riders are low-cost enhancements to an individual's existing life insurance policy. They supplement and broaden an individual's insurance coverage to compensate more than simply the expense of death.

What Is A Waiver Of Premium Rider?

Waiver of Premium Rider is a common optional extra coverage that is added to an insurance policy. The Waiver of Premium Rider is a one-of-a-kind rider that waives all future payable premiums if the life guaranteed becomes physically disabled. The waiver of premium enables the continuation of the insurance if the policyholder is unable to fulfill premium payments. The waiver of premium rider might assist the life assured in ensuring the financial security of their family in the event that the life assured experiences total and permanent incapacity as a result of an accident. To know more about including waiver of premium rider in term insurance, read on.

Why Choose Waiver Of Premium Rider?

Following are the reasons for choosing waiver of premium rider -

• Preventing Failures - The main advantage of including a waiver of premium benefit rider in a life insurance policy for a policyholder is that it prevents the policy from lapse owing to unpaid fines of premiums. It is vital to understand that a claim on an expired life insurance policy cannot be lodged. As a consequence, even if customers do not pay the required installments, this add-on function assures that their insurance remains valid.
• In Case Of Death - If an insured individual dies within the period of the policy, most life insurance policies will expire. The preset death benefit is given to the nominee of the appropriate covered individual in this case. If an insured person applies the waiver of premium rider onto their life insurance policy, the policy will carry on paying out until the policy's term expires, even if one of the following circumstances occurs. The death of the insured individual and the transfer of their death benefit onto their nominees. The incidence of a total or permanent disability that prevents an insured individual from paying premiums on time. As a consequence, including a premium waiver rider in a life insurance policy for a policyholder is always a smart idea.
• Safeguarding Financial Objectives - A physical ailment can disrupt a person's life, forcing individuals to fall behind everyone else in their expenses and forgo their financial goals. As a consequence of the aforementioned illnesses, a family may face significant financial hardship, as well as significant medical expenses and mental anguish. A premium waiver enables an insured individual to continue receiving insurance coverage even though they are not able to make any more payments. As a consequence, the financial goals for which the insured obtained coverage are unchanged.
• Family’s Well-Being - A person's family's financial stability may be compromised if the life insurance policy fails owing to nonpayment of payments. A waiver of premium life insurance rider in this case enables an individual to preserve their family's personal finances although if they are not able to make extra premium payments to the life insurance policy. A critical illness waiver of premium rider could also safeguard a person from becoming unable to pay their payments following a critical illness diagnosis.

Endnotes

Considering the significant advantages that a waiver of premium rider offers, having one in a person's life insurance policy is generally a smart idea. This feature, besides providing life insurance, renders an insured person's policy extra comprehensive and assists them in ensuring their family financially sound in the event of a protracted incapacity or catastrophic disease.

Also read: What Are the Advantages Of Life Insurance Riders?

Should I Incorporate More Than One Rider Into My Life Insurance Policy?