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Here’s why you should consider the Waiver of Premium Rider in your next insurance plan

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Here’s why you should consider the Waiver of Premium Rider in your next insurance plan
April 01, 2024

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Introduction:

Securing yourself and your loved ones with life insurance is a prudent financial decision to ensure financial protection against unforeseen circumstances. However, amidst life's unpredictable twists and turns, there may come a time when meeting insurance premium obligations can be a struggle. That is where the waiver of premium rider can swoop in to save the day. This rider can be the perfect companion for your insurance policy, ensuring that your coverage stays intact even if you hit a rough patch. Find out why opting for a waiver of premium in your next insurance plan could be a game-changer for you.

What is a waiver of premium rider?

A waiver of premium rider is like having a safety net attached to your insurance policy. Situations like being hit with a severe illness, a significant injury, or a disabling condition can interfere with your ability to work and earn and ultimately put a strain on your finances. The last thing you need to worry about is keeping up with insurance premium payments at such a time.

The waiver of premium rider is a handy add-on that waives off your future premium obligations so you can focus on your recovery without the stress of keeping your policy active. This optional rider can be added to your existing life insurance plan for an extra layer of protection and peace of mind.

Reasons to opt for a waiver of premium rider

It offers enhanced financial security.

Life insurance is crucial for ensuring your loved ones are financially protected in case of your unfortunate absence. However, if you are unable to pay the premium, your policy will lapse, and the benefits will cease. With a waiver of premium rider, you secure your loved ones' future and yours.

If you are struck by a severe illness or injury that prevents you from working, the rider ensures your policy continues without the burden of premium payments. Adding this rider safeguards your policy from lapsing due to unforeseen circumstances beyond your control.

It offers protection against life's uncertainties.

Life is unpredictable, and adding a waiver of premium rider provides an additional layer of protection against life's uncertainties. A sudden accident, a diagnosis of a critical illness, or permanent disability can leave you financially vulnerable.

A waiver of premium rider ensures that all future premiums are waived off, giving you the breathing space you need to focus on what truly matters - accessing the medical help you need and concentrating on getting better without worrying about your insurance coverage.

You also have the option of customising your insurance plans with additional riders. Let's say you have purchased HDFC Life Sanchay Plus plan and need a waiver of premium rider. To start with, this plan is a savings plan. It offers life cover, Guaranteed1 payout, return of total premiums paid at the end of the payout period2. You can also get customisation by purchasing the HDFC Life Waiver of Premium Rider.

The waiver of premium rider continues with base plan or policy. It means that you can get a waiver of the premiums on the plan and get comprehensive coverage against demise of the insured, disability and diagnosis of 603 critical illnesses.

It offers tax benefits.

When it comes to managing your finances, tax benefits can make a significant difference, and the waiver of premium rider offers just that. Adding a waiver of premium rider to your life insurance plan opens the door to tax benefits under the applicable Income Tax laws4. This means that the premiums you pay towards the rider can be deducted from your taxable income up to a predetermined limit. This can help you effectively reduce your taxable income, leading to potential savings on your tax bill.

A waiver of premium rider safeguards your financial future as well as maximises your current tax savings. It is a win-win situation that allows you to protect yourself and your loved ones while optimising your tax planning strategy.

It offers peace of mind.

While you may not be able to predict the future, you can prepare for it. Life is full of surprises, both pleasant and challenging, but by preparing for the unexpected, you empower yourself to face whatever comes your way confidently. Knowing that you have a safety net in place, ready to kick in if you are unable to pay premiums, can offer a profound sense of reassurance.

Preparing with a premium rider waiver is a proactive step to protect yourself and your loved ones and live your life with confidence and peace of mind, no matter what the future may hold.

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Disclaimer

  1. Provided all due Premium(s) have been paid and the policy is in force.
  2. Applicable for life long and long term income option.
  3. As mentioned and defined in the policy document, subject to exclusions
  4. As per Income Tax Act, 1961. Tax Benefits are subject to changes in tax laws.

**For all details on Riders, kindly refer to the Rider Brochures available on our website.

HDFC Life Sanchay Plus (UIN: 101N134V21) is a non-participating, non-linked savings insurance plan. Life Insurance Coverage is available in this product

HDFC Life Waiver of Premium Rider (UIN No: 101B032V01) is an Individual Pure Risk Premium, Life/Health Insurance Rider

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