What can be a valid reason to add waiver of premium rider to life insurance policy?


I am the only earning member in my family. I have two children, and my wife is a homemaker. Should I add a waiver of the premium rider when buying a life insurance policy?

– Name withheld on request

Yes, you should definitely consider adding a waiver of premium rider to your life insurance plan. By adding this rider which comes at an additional cost, all future premium payments are waived if you become permanently disabled or, unfortunately, pass away. Your policy will remain active with all benefits in place, ensuring that your family is still financially protected against life’s uncertainties.

I am 32 years old and want to buy a term plan for the first time. What are my options for ideal coverage?

– Name withheld on request

You could look at purchasing a term plan with an increasing cover option which ensures an increase in life cover at regular intervals commensurate with one’s income rise and inflation increase. The premiums would be slightly higher than a basic term plan but 10-15 years later, when the need for additional cover arises, the cost of buying another term plan would be much more than the initial higher premium amount. Also, a fresh policy at that time would mean fresh underwriting and one’s health may or may not be the same at a later stage in life. Alternatively, you could opt for a term plan with riders which covers risks such as accidents or critical illness at a nominal increase in premium.

I have recently been diagnosed with kidney disease requiring regular dialysis. I have a critical illness health insurance plan which covers 30 illnesses, including kidney disease. What documents do I need to provide to claim the cover?

– Name withheld on request

As the insured person, you will need to provide your KYC documents, duly filled claim form, a certificate from the physician or hospital last attended, and any other document required by the insurer to process the critical illness claim. On receipt of the documents, the insurer will assess the admissibility of your claim against the policy terms and conditions. Upon satisfactory completion of the assessment and admission of the claim, the insurer will then payout the claim amount as per the policy contract.

Queries answered by Vighnesh Shahane, MD & CEO of Ageas Federal Life Insurance.

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