The Life Insurance Corporation of India provides several riders that help increase the protection and value of life insurance policies. Among these, the Premium Waiver Benefit Rider (PWB Rider) is a valuable option that helps ease the financial stress on policyholders and their families during challenging situations.

What is LIC Premium Waiver Benefit Rider?

The Life Insurance Corporation of India Premium Waiver Benefit Rider is an optional rider that can be added to a base life insurance policy. Under this rider, if the proposer (the person paying the premiums and insured under the rider) dies during the rider term, all future premiums of the base policy are waived by LIC for the remaining premium payment period. As a result, the nominee or family members can continue enjoying the policy benefits without the burden of paying future premiums to keep the insurance policy active.

Eligibility Conditions for LIC Premium Waiver Benefit Rider

Who Can Opt for the LIC Premium Waiver Benefit Rider?

The eligibility requirements for the Life Insurance Corporation of India Premium Waiver Benefit Rider are as follows:

• Minimum age at entry: 18 years completed
• Maximum age at entry: Generally up to 55 years (nearest birthday)
• The rider can be added at the time of purchasing the base policy or during the premium-paying term, provided the remaining premium-paying term for both the base plan and rider is at least 5 years.
• The combined total of the proposer’s age and rider term should not exceed 70 years.
• This rider is available with selected individual life insurance policies where LIC allows it as an additional benefit.
• It is a non-linked and non-participating rider, which means it is not eligible for bonuses or profit-sharing benefits from the corporation.

Main Advantages of LIC Premium Waiver Benefit Rider

The key features and benefits of this rider include:

No Loan or Surrender Benefit: This rider does not acquire any paid-up value, surrender value, or loan facility.

Premium Waiver Benefit: In case the proposer dies during the rider term, LIC waives all future premiums payable under the base policy from the date of death until the end of the rider term.

No Survival or Maturity Benefit: The rider does not offer any separate maturity or survival payout.

Base Policy Continues: Even after premium waiver, the main policy remains active, and the policy benefits continue as per the terms of the base plan.

Other Rider Premiums Payable: Premiums for any additional riders attached to the policy, except this rider, must still be paid regularly.

Termination Conditions: The rider ends on the earliest occurrence of the proposer’s death, completion of the rider term, termination of the base policy, or conversion of the policy into paid-up status.

How Does the LIC Premium Waiver Benefit Rider Function?

The Life Insurance Corporation of India Premium Waiver Benefit Rider is designed to waive future policy premiums if the proposer passes away during the rider term. Here’s an easy way to understand how it works:

• You purchase an LIC base insurance policy and add this rider either at the beginning of the policy or during the policy tenure.
• Along with the premium for the base plan, you also pay an extra premium for the rider.
• If the proposer remains alive throughout the rider term, the rider ends without offering any separate maturity benefit.
• If the proposer dies during the rider period, LIC waives all remaining premiums of the base policy, while keeping the policy active until maturity.
• The benefits of the base policy, such as maturity value or death cover, are paid to the nominee according to the policy terms.
• This rider provides financial support to the family by ensuring the insurance coverage continues without the need to pay future premiums.

Why Consider Choosing the LIC Premium Waiver Benefit Rider?

The Premium Waiver Benefit Rider helps provide financial stability by removing the responsibility of future premium payments during challenging situations. Here are some important reasons to consider this rider:

• Family Protection: Keeps the life insurance policy active even if the proposer dies early, so the family does not face the burden of paying premiums.
• Reduces Financial Stress: Future premium payments are completely waived after the proposer’s death during the rider term.
• Cost-Effective Option: The additional premium for the rider is generally affordable and depends on factors like age and policy duration.
• Convenient Flexibility: The rider can be added either at the start of the policy or during the premium-paying period.
• Greater Peace of Mind: Helps secure your long-term insurance benefits and supports your family’s financial future.

How is the LIC Premium Waiver Benefit Rider Premium Calculated?

The premium for the Life Insurance Corporation of India Premium Waiver Benefit Rider is determined based on multiple factors, such as:

• Age of the proposer at the time of policy entry
• Rider duration, which is generally linked to the remaining premium-paying term of the base policy
• Sum assured or coverage amount of the base insurance plan
• Chosen premium payment frequency, such as yearly, half-yearly, quarterly, or monthly

Since this rider is added as an extra benefit to the base insurance policy, the additional premium amount differs depending on the proposer’s age and the selected policy term.

What is the LIC Premium Waiver Benefit Rider Calculator?

An Life Insurance Corporation of India Premium Waiver Benefit Rider Calculator is an online tool designed to help policyholders and new buyers estimate the rider premium quickly and accurately. By entering details such as the proposer’s age, rider duration, and preferred premium payment mode, the calculator provides an estimated premium amount payable either yearly or according to the selected payment frequency.

This tool helps users in several ways, including:

• Understanding the extra premium amount required for adding the rider.
• Making better and more informed decisions while purchasing LIC insurance plans.
• Comparing premium costs based on different ages and policy terms.
• Managing financial planning more effectively by estimating overall premium expenses.

These calculators are easily available online and are designed to be simple and user-friendly.

How to Use the LIC Premium Waiver Benefit Rider Calculator?

Using the Life Insurance Corporation of India Premium Waiver Benefit Rider Calculator is quick and easy. In most cases, you simply need to follow these steps:

• Enter the proposer’s age at the time of policy entry.
• Select the rider term, which generally matches the premium-paying term of the base policy.
• Choose the preferred premium payment frequency, such as annual, half-yearly, quarterly, or monthly.
• Click on the calculate or submit button.

After entering the required details, the calculator will display the estimated rider premium amount payable, helping you understand the additional cost of choosing the rider.

Important Rules and Conditions to Know

• The rider premium must be paid together with the premium of the base insurance policy; separate payment for the rider is not permitted.
• The grace period for paying premiums will be the same as the grace period available under the base policy.
• The rider ends on the earliest occurrence of the proposer’s death, completion of the rider term, or termination/paid-up conversion of the base plan.
• If the premium-paying term of the base policy is longer than the rider term, premiums falling due after the rider term must continue to be paid.
• This rider does not offer any surrender value, cash value, or loan facility.
• Premiums for any other riders attached to the base policy, apart from the Premium Waiver Benefit Rider, must be paid separately.

Frequently Asked Questions About LIC Premium Waiver Benefit Rider

What does the LIC Premium Waiver Benefit Rider mean?

The Life Insurance Corporation of India Premium Waiver Benefit Rider is an optional rider that can be added to a life insurance policy. If the proposer dies during the rider period, all future premiums of the base policy are waived, ensuring the policy continues without placing any premium burden on the family.

When was the LIC Premium Waiver Benefit Rider introduced?

LIC introduced the Premium Waiver Benefit Rider on February 1, 2020, to offer additional financial protection and security to policyholders and their families.

Who is eligible to select this rider?

LIC policyholders aged between 18 years and 55 years (nearest birthday) can opt for this rider either while purchasing a new policy or during the premium-paying term of an existing eligible policy, subject to LIC’s terms and conditions.

Does the LIC Premium Waiver Benefit Rider offer maturity benefits?

No, this rider does not provide any separate maturity or survival payout. The benefits are available only through the main life insurance policy to which the rider is attached.

Conclusion

The Life Insurance Corporation of India Premium Waiver Benefit Rider is a useful add-on that helps protect policyholders’ families from the burden of future premium payments. If the proposer passes away during the rider term, LIC waives all remaining premiums of the base policy while keeping the insurance coverage active. Introduced on February 1, 2020, this rider offers added financial security and peace of mind by ensuring continued life insurance protection without extra premium obligations after the proposer’s death.

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