As a responsible adult, you go ahead and buy a life insurance policy that offers financial security to your family in your absence. You pay all the premiums on time to ensure that the policy fulfills its objective. But what happens when you are seriously injured or diagnosed with a critical ailment and cannot earn to provide a livelihood for the family? Exactly for such times, waiver of premium rider comes to your rescue. This rider waives off all future premiums to keep the policy in force when you are incapacitated to pay the premium owing to physical disability. Indeed, it is a useful rider that ensures your policy remains active even if you do not pay premiums. Let’s dive in to know more about this rider.
1. When will the rider work?
The rider is available in the following scenarios:-
2. Who is eligible for the rider?
Anyone in the age group of 18-65 years is eligible.
3. Is there any waiting period?
Yes, there is a waiting period of 90 days. It means the insurer will waive off future premiums only if the insured contracts a critical ailment or suffers from disability after 90 days of the commencement of the policy.
4. When can this rider be added/removed?
This rider can be added only at the inception of the policy. Once added, the insurer doesn’t allow its removal.
5. What is the cost?
Besides age and gender, the amount of premium to be paid depends on the premium of the base life insurance policy. For instance, for a Rs 5-lakh coverage, a 30-year old would need to pay Rs 5,232 as premium under Max Life's Life Partner Policy. If he wants to get the waiver of premium added to the insurance policy, he would need to pay Rs 100 only.
6. What documents are required for claim settlement?
For the successful execution of a claim, the following documents need to be submitted.
Mandatory Documents |
Critical Ailments |
Disability |
Duly-filled claim form |
Yes |
Yes |
Copy of Original policy documents |
Yes |
Yes |
Policyholder's current address and ID proof |
Yes |
Yes |
Supporting Documents |
|
|
Policyholder's copy of bank passbook |
Yes |
Yes |
Medical statement stating health issue |
Yes |
Yes |
Disability certificate from the relevant government body |
|
Yes |
7.How long will the rider continue?
The rider is terminated if:-
8. Are there any tax benefits?
As per the Income Tax Act 1961, you will be eligible to get the following tax benefits:-
9. What are the exclusions of the rider?
The life insured will not get any benefits if a critical illness or disability is due to any of the following reasons:-