What Is the Premium Waiver Option in a Child Plan?

 

Every parent always wants their child to have the best of everything. They work hard to send their kid to the best school and indulge their every wish. More than anything, parents pray for their child to stay happy and healthy. Every parent and guardian tries their level best to secure a better future for their child. One of the easiest ways for them to do this is by purchasing a child policy. A child insurance plan provides your child with financial security and protection when they require it the most.

Every child policy has both investment and insurance components. Here, the parent’s life is insured and the child is picked as the beneficiary. In the unfortunate circumstance that something happens to the parent or guardian, the child will receive the sum assured amount as a payout. Additionally, these policies offer the child regular payouts whenever they cross a significant milestone in their life. So, your child will receive a small sum for completing high school or graduating from college. They could receive another sum when they decide to get married. The idea is to provide your child with the money when they need it the most.

What Are Child Plan Riders?

A child policy rider enhances the features of your existing plan. A child insurance plan rider works in a similar fashion to a car insurance add-on. You can opt to pay a slightly higher premium to enjoy extra benefits and protection. Today, every child policy comes with a range of riders. It’s up to you to pick and choose which riders you’d like to enhance your policy. Some popular riders include an accidental death benefit and a family income benefit. But, the most crucial rider is the waiver of premium rider. These riders get triggered in very specific circumstances, when something extreme and unfortunate happens to the policyholder. Once triggered, the rider ensures that the policy remains active, even if the policyholder cannot pay the premiums any longer. Instead, the insurer will pay the premiums on behalf of the policyholder.

Common Child Policy Riders

Let’s take a look at some of the common riders that people opt for along with their child insurance plan:

• Accidental Death and Disability Benefit

  The rider provides an additional payout to the insured’s nominee in case they meet with an accident that proves fatal or leaves them disabled. The payout from the rider is over and above the sum assured payout from the actual plan if the accident proves fatal.

• Child Term Rider

  You may not want to even imagine it, but something could happen to your child. In the case of a fatality by a certain age, this rider provides the parents or guardians with a small benefit to help them take care of essential expenses.

• Critical Illness Rider

  Under this rider, the insured receives a payout if they are diagnosed with a covered critical illness. The money from the payout enables them to cover the cost of treatment or replace lost income.

• Term Conversion Rider

  Sometimes, parents opt for term policies to help look after their children. With this rider, they can easily convert their term plan into a whole life policy without paying a high additional cost.

• Income Benefit Rider

  Under certain situations, if the parents or guardians are no longer around to care for the child, this rider ensures they receive 1% of the sum assured amount every month. The amount allows them to manage daily expenses with ease.

By adding a waiver of premium option to your child policy, you can ensure a safer and better future for your little one. When you are purchasing your child insurance plan, evaluate the riders available. Pick the ones that best suit your requirements and pay the enhanced premium. When you come to consider it, the cost is almost negligible compared to your child’s safety and financial security.

HDFC Life Critical Illness Plus Rider (UIN: 101B014V02) is a non-linked, non-participating rider. Please know the associated risk and applicable charges from your insurance agent or the intermediary or policy document of the insurer.

HDFC Life Income Benefit on Accidental Disability Rider (UIN: 101B013V03) is a Non-Linked, Non-Participating Rider. Please know the associated risk and applicable charges from your insurance agent or the intermediary or policy document of the insurer.

HDFC Life Protect Plus Rider (UIN:101B016V01) is a Non-Linked Health Insurance Rider. Please know the associated risk and applicable charges from your insurance agent or the intermediary or policy document of the insurer.

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

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ARN: ED/09/22/28845