Stay Protected When Life Takes an Unexpected Turn: Waiver of Premium Explained

Life can be unpredictable – Covid-19 is the biggest example. And if you’re thinking, ‘Oh, that was a one-time event’, let us assure you that any unexpected event can turn your life upside down.

Author:IndiaFirst Life | Date:17 Jul 2023 | Time:12:10:00

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I do not have insurance because:

  • I am young, hale and hearty 

  • It is expensive   

  • What if something happens to me and I can’t afford the premiums 

  • I’ll think about it later 

  • My employer has covered me 

  • The divine will protect me 

If any of these statements describe you, then you are risking the financial security of your dependents. 

Life can be unpredictable – Covid-19 is the biggest example. And if you’re thinking, ‘Oh, that was a one-time event’, let us assure you that any unexpected event can turn your life upside down.  

What if an accident or illness made you incapable of employment? Or you developed a critical illness and needed funds for expensive medical treatments? Who would come to your rescue? 

A life insurance policy with a waiver of premium rider will give you the financial protection you need. 

What is waiver of premium? 

Waiver of premium is an insurance rider that allows you to stop paying your future premiums, in case of unexpected accidental disability, death, injury or critical illness. The insurance coverage and benefits continue for the duration of the rider and the policy does not lapse.  

You can purchase the waiver of premium rider when you buy the policy. This is either a one-time cost or added to your premium. 

How does waiver of premium work? 

The rider operates in two situations. First, if the policyholder has experienced total or permanent disability for at least 6 months due to an accident. Second, if the policyholder is diagnosed with a critical illness. 

You can only claim it once. The rider gets terminated if the base policy terminates. 

Some waiver of premium riders have a waiting period during which you can't claim any benefits. If something were to happen during this period, all the premiums paid may be refunded.  

Persons with pre-existing illnesses or disabilities are not eligible for waiver of premium. The other exclusions include:  

  • Suicide 

  • Self-inflicted injuries 

  • Congenital Infection 

  • Alcohol or drug abuse 

  • Pre-existing medical condition 

  • Radioactive contamination 

  • War or Civil unrest 

  • Breach of law 

  • Wilful participation in violent acts 

  • Disability caused by hazardous occupation, except where approved by the insurer for which an appropriate premium has been charged.  

  • Disability caused by participation in any hazardous sports or activities 

What is the purpose of waiver? 

A waiver is a legal agreement between two parties that protects both their interests. In the case of insurance, it protects the policyholder from paying any future premiums in case of unexpected critical illness or accidental injury or disability. 

Waiver of premium benefit 

The waiver of premium benefits are many. 

  • Safeguards against financial burden in case of any unexpected calamity 

  • Helps manage regular expenses without feeling the strain 

  • Keeps the policy active even if the policyholder is unable to work and pay premiums 

  • Premium rates are affordable especially when combined with a term plan purchase as you only pay additional premium for this rider 

  • Money saved on premium payment can be diverted towards treatment costs, especially if there is loss of income 

  • Tax benefits can be claimed on premium paid as per applicable laws  

Waiver of premium plans that offer more benefits

IndiaFirst Life has 3 plans that give you the benefit of waiver of premium plus more.   

IndiaFirst Life Waiver of Premium Rider plan gives you three different coverage options to choose from and covers 10 critical illnesses. 

IndiaFirst Life Guaranteed Protection Plus Plan is a zero compromise, win-win plan that offers multiple coverage options, return of premium option, spouse cover, in addition to waiver of premium for 40 critical illness. 

IndiaFirst Life Investment (ULIP) Plans give you the additional double benefit of insurance protection and wealth creation.  

If you haven’t bought an insurance plan, make that a priority. Waiver of premium is an important financial asset to shield yourself from the uncertainties of life. The peace of mind it offers apart from the financial security, is invaluable. 


IndiaFirst Life

Headquartered in Mumbai, IndiaFirst Life Insurance Company Limited (IndiaFirst Life), with a paid-up share capital of INR 663 crore, is one of the country's youngest life insurance companies. Our key differentiators are our simple, easy-to-understand products that are fairly-priced and efficiently serviced.We offer a diversified suite of over 46 need-based products & Riders (as of 31st March 2022) catering to varied customer segments, leveraging multiple distribution capabilities and augmenting various investment options. In all, propositions under the categories of Protection, Assured Savings, Wealth, Pension, Health and Group Funds for Employee Liabilities form a complete suite of offerings that help our customers prepare for the certainties of life. Our products are easy to understand and competitively priced with risk management being our core strength.

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