The Value of a Premium Rider Waiver in a Child Education Plan
Table of Contents
As a parent, you will always prioritize the protection and security of your children. The first step in securing your child's financial future is to ensure that they have enough insurance coverage. Riders are incredibly crucial when it comes to your child's insurance. Riders are optional features that can be added to a policy for an additional fee. An insurance policy can include several riders. The accidental death benefit and the family income benefit are two of the benefits provided. However, when it comes to child insurance, the waiver of premium rider is essential. As a result, you may have faith in your child's future.
Premium Rider Waiver's Importance In A Child Education Plan
In the case of an unanticipated catastrophe, a premium waiver is a supplemental option provided under kid plans to reimburse premium costs. Parents are the primary policyholders who must pay child insurance premiums on a regular basis. Consider the following scenario: you, the principal policyholder, are injured, killed, or paralyzed as a result of a sad event. In this situation, the rider ensures that future premiums be eliminated as long as the coverage is maintained. The premium rider waiver ensures that the policy does not lapse and that the kid continues to receive the protection he or she requires to pursue his or her goals.
Premium Rider Waiver Benefits
It offers various benefits that you should consider while purchasing the plan and its riders.
Protection Against Potentially Fatal Illnesses
If the parent is diagnosed with a serious disease and dies before the end of the term, the waiver of the premium rider helps to cover the remaining term's premium payments. Cancer, heart attack, renal failure, and vascular disease are just a few of the serious illnesses against which the rider protects you.
Protection Against Disability
This rider ensures that if the parent becomes disabled as a consequence of an accident or other illness, all future premiums are waived. However, in order for this rider to be able to work, the handicap must persist for at least 6 months.
Premiums Are Low-Cost.
The majority of child insurance plans have a premium waiver rider. If it is not available, it can be added to the regular cover for a little fee.
Flexibility in picking a rider
Although most child plans contain a premium rider waiver, most policies also enable for its withdrawal or inclusion as required. Keeping the rider option, on the other hand, is only beneficial in times of crisis.
Tax Advantages
Section 80C of the Income Tax Act of 1961 exempts from tax the premium paid for term insurance, including the waiver of premium rider. You are eligible for a tax exemption of up to Rs 1.5 lakh.
Conclusion
Individual life insurance policies are designed to help cover expenditures such as replacing lost income in the case of your death. If your child dies while you are covered, a child rider can be added to your policy to pay a death benefit. A Child rider can help you pay for your child's funeral if they die. It may also provide you the option of taking time off from work. You can improve your insurance by adding a Rider of premium waiver for an additional fee. This rider guarantees that your coverage does not lapse as a result of a single unlucky incidence.
Also read- In Summary, A Guide To Term Insurance Riders
Here's Why Your Term Plan Needs A Critical Illness Benefit Rider.
