Waiver of Premium Rider Is Crucial While Choosing Child Insurance: Know Why
As a parent, you take it upon yourself to provide your
child with the best of everything. Considering the
rising costs of living, being on stable financial
footing is undoubtedly the key here. A comprehensive
child insurance plan is the first step to building a
financially secure future for your child and securing
him/her from the vagaries of life.
That’s because a child insurance policy ensures that
your precious one’s needs are met, and importantly,
never compromised, even when you’re not around. So if
you are looking out for a child plan, know there is a
raft of options in the market. That being said, it would
be prudent to select one with the ‘Waiver of Premium’
benefit. Let’s explore why:
01What Is a Waiver of Premium and why is it Essential?
For starters, riders are add-on covers that you can
avail by shelling out a nominally higher premium. There
is usually an array of such riders that you can add to
your insurance policy, including critical illness rider,
or accidental death benefit, and the likes. However,
when it comes to child insurance, a Waiver of Premium is
arguably the more critical rider.
With this rider, you (the policyholder) ensure that your
child continues getting all policy benefits even when
you no longer can pay any premium. In the case of any
unfortunate incident that may cripple the source of
income in your family, the Waiver of Premium rider will
assume the burden of paying all future premiums so that
your child (the nominee) continues to receive
uninterrupted coverage. It is this benefit that makes
Waiver of Premium unique and indispensable at the same
time.
02Will You Always Have to Choose Separately?
You need not always have to add the rider, there are plans which offer Waiver of Premium as an in-policy feature. For example, the Aditya Birla Sun Life Insurance Child’s Future Assured Plan has Waiver of Premium as an in-built policy feature.
03How Does A Waiver of Premium Work?
As a parent, you will always want to secure your child’s safety and financial security at every stage of his/her life. For example, you may want to accumulate a sizeable corpus for when your kid grows up to be 18 to fund his graduation expenses especially with 10% education inflation rate1. So, if you opt for this all-important rider while buying a child insurance plan, and something unfortunate happens to the life insured, the insurance provider would continue the policy and keep the plan active, even when you’re not around. This eventually ensures that your child enjoys the full amount on policy maturity (or as per the date stated in the policy).
Conclusion
With a regular child plan, you get to enjoy policy
benefits as long as you’re shelling out the premium on
pre-decided dates. However, with the Waiver of Premium
rider, you can rest assured that your child would get
full maturity benefits and at the right time, even if
you wouldn’t be there to pay the premium.
All in
all, this feature is an excellent way to ensure that
life’s curveballs don’t derail you from creating a
formidable corpus for your child for when he/she would
need it the most.
1Source: economictimes
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