LIC Premium Waiver Benefit Rider
Optional benefits with your LIC policy can help you provide more comprehensive coverage that ensures complete protection against unforeseen circumstances. One such rider is the LIC Premium Waiver Benefit Rider wherein all the future premiums are dropped by the company on the death of the proposer. This reduces the financial burden on the surviving family to keep the policy in force to receive the policy benefits.
Introduction To LIC Premium Waiver Benefit Rider
As the name suggests, the rider waives off future premiums due on or after the death of the life assured till the end of the rider term. Despite the premiums being waived off, the policy benefits remain intact. It is an add-on benefit that you can attach to your base life insurance policy on paying an extra premium amount.
The LIC Premium Waiver Benefit Rider is especially important with a child policy. In the case of a child policy, the parent is usually the proposer paying the premiums. On the death of the premium paying parent, all future premiums are waived off till the child turns 25 years of age or till the rider tenure (whichever is earlier).
How Does The LIC Premium Waiver Benefit Rider Work?
Let’s take an example to understand how LIC’s Premium Waiver Benefit works.
Say that you bought a child LIC policy with a sum assured of Rs. 5 Lakhs with a policy term of 30 years. After 30 years, that is, on the date of maturity of the policy, your child shall be entitled to the maturity benefit. On the off chance that you die within the policy term, someone else has to continue premium payments to keep the policy in force and ensure that the child receives the benefit amount. However, when you opt for the Premium Waiver Benefit Rider with your policy, LIC waives off future premiums payable without affecting the maturity / death benefit amount on the death of the proposer.
LIC’s LIC Premium Waiver Benefit Rider – Additional Eligibility Criteria
| Criteria | Minimum | Maximum |
| Entry Age | 18 years | 55 years |
| Maximum Maturity Age | 70 years | |
| Rider Term | Remainder of the premium paying term of the base policy, or 25 minus the age of the minor (whichever is lower) | |
| Sum Assured | Sum of the future premiums payable till the end of the rider term | |
Additional Things To Note About The LIC Premium Waiver Benefit Rider
It does not waive off premiums for other riders that are also attached to the base plan.
There is no maturity benefit with this add-on.
It does not participate in the profits for the company.
A minimum of 5 years in the premium paying term should be outstanding under the rider as well as the base plan.
The premiums for the rider have to be paid with that of the base plan and not separately.
No paid-up or surrender value shall be applicable with the rider.
The rider stands void if death occurs as a result of suicide. Only up to 80% of the premiums paid for the rider shall be refunded.
The LIC Accidental Death Benefit Rider is a good way to ensure that your family enjoys the benefits of the base policy without worrying about future premiums. This makes sure that your dependents do not have to struggle with finances and can use the death benefit amount to fund other expenses. This rider is especially important if your policy is in the name of your child. Even after death, your child will be equipped to finance his education or other needs with the benefit amount.
