As a parent or parent-to-be, Child’s security and protection become the priority. All parents dream that their child gets the best possible facilities to lead a happy and financially secured life. Every child needs a good education with adequate financial support but every parent is not ready to deal with the financial burdens that may arise when your child reaches a certain age. As a backup plan, ensure your child’s financial security with the right insurance policy. Having good insurance is the first step towards building your child’s bright future that helps in staying financially strong in difficult situations.Read more
Child insurance plans are investment cum insurance plans that help in financially planning your child’s future such as higher education at the right age. These plans require the accumulation of money over a period of time and then on maturity, a lump sum amount or the total amount is paid to a child that helps to cover their education expenses.
Investing in a child insurance plan is one of the best ways to save for your child’s future requirements such as higher education. Nowadays, education costs are rising and a parent needs a sufficient amount of savings to make their children achieve their goals. Child insurance plans offer amazing financial protection features and benefits that ensure your child will get the best in the future, even if you are not around.
There are several child insurances plans available in the market but the primary question comes to the mind of every customer: How to go about it? How to choose a plan? What features to look for in a plan? When it comes to your child’s safety, the availability of riders under your chosen child insurance plan is important. Riders are the additional or add-on to an insurance policy that is availed by paying an extra premium. Several riders such as income benefit, an accidental death benefit is available that you can attach to your insurance policy as per your requirements. But when it comes to child insurance, Waiver of Premium Rider is one of the most important riders to be considered. It is one of the most frequently purchased rider options added along with basic insurance coverage.
Waiver of Premium Rider is an additional cover purchased to increase the value of your life insurance policy. This rider ensures that your child continues to get every policy benefit, even in your absence. In case of an unfortunate event such as disability or injury due to an accident, the waiver of premium rider takes care of all the premiums required to be paid in the future. It also ensures that the paid premiums are waived off, in case you lose a sole earning member of your family because of an illness or injury.
So, this Waiver of Premium Rider reduces the financial burden of paying all the future premiums in case of the demise of the breadwinner of the family. In such situations, a child continues to receive uninterrupted coverages. The entry age of waiver of premium rider is ranging from 18 years to 65 years of age. One of the unique features of this rider is that there is no limit on the maximum premium to be waived off. Apart from all these benefits, most insurers activate the rider on the diagnosis of first critical illness or any accidental or permanent disability.
It is always not important to add the waiver of premium rider, there are various plans which offer this rider as an in the policy features and benefits such as Aditya Birla Sun Life Child Insurance plan.
Parents want their child’s futures to be safe and secure. Because of which they go for a child insurance plan where they want their child to receive the benefits at the desired age and at a right time. Let’s understand this with the help of an example:
In the case of a regular child insurance plan, if Shweta has a 3-year-old child and she wants to save Rs. 50 lakhs for her daughter when she crosses 21 years of age. If one day, unfortunately, Shweta dies because of an accident, the sum assured and the fund value will be provided to the nominee and the plan ends. But in case of a waiver of premium rider, even after the death of Shweta (the policyholder), the plan will continue. The insurance company pays the sum assured amount to the nominee and the premiums will also be paid by the insurer on a due date.
There are some of the major exclusions associated with this rider. We have listed a few of them. Let’s take a look:
Some insurers require the policyholder to meet specific needs such as to be healthy and fit at a certain age to qualify for the waiver of premium rider.
Policyholders should consider including this rider in their base policy coverage.
If you are using a regular child insurance plan, you only get to enjoy the benefits as long as you are paying premiums on set dates. But waiver of premium rider ensures that your child will get the complete maturity benefit at the right time, even in your absence. It is always advisable to read all the terms and conditions of the availed child insurance plan.
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