SBI Life Insurance has launched a ‘Waiver of Premium’ rider that waives future premiums if specified contingencies, including accidental total permanent disability (ATPD) and critical illnesses, occur, subject to the rider’s terms and conditions.
The rider is available with select individual linked and non-linked life insurance products. It is designed to help policyholders maintain their life insurance plans when unforeseen circumstances affect their ability to pay premiums.
Under the rider, all future premiums, including extra premiums, are waived when a specified covered contingency occurs. The base policy and other attached riders can then continue according to their respective terms.
How does SBI Life’s waiver of premium rider work?
The coverage depends on whether the proposer and the life assured are the same person.
If the proposer and the life assured are the same, the rider covers accidental total permanent disability and 21 specified critical illnesses.
If they are different people, the rider covers the proposer’s death, accidental total permanent disability and 21 specified critical illnesses.
The premium waiver is intended to help policyholders maintain their insurance plans when a covered event affects their ability to continue making payments.
Who can opt for the rider?
SBI Life said customers can opt for the waiver of premium rider at the time of policy inception or at a subsequent policy anniversary, subject to eligibility and a minimum outstanding premium payment term of five years.
The rider is intended to help policyholders maintain long-term financial commitments, including children’s education and retirement planning, even when a covered event affects their ability to pay premiums.
Commenting on the launch, M. Anand, president and chief distribution officer at SBI Life Insurance, said the rider was designed to help customers sustain their long-term financial plans despite unforeseen circumstances.