You might have come across this term while your insurance agent explains you an insurance policy and talks about its benefit in the said policy. This is one of the riders that can be attached to your insurance policy with a small additional premium over and above to the base premium amount.
Sometimes Waiver of Premium (WoP) comes as an option with the policy or an inbuilt benefit with the Insurance Policy.
Now the question is what this is all about and what is the benefit of taking such riders?
In any unfortunate event such as; you fall seriously ill, you incur deep injuries due to accident or due to any cause you are left with impaired. In such circumstances where you are not in a position to earn, the life insurance company will become responsible to pay the premiums which you were expected to pay.
WoP rider is mostly seen in child insurance policies as this primarily has been set up in place to provide money for your child in the hour of his or her need. In these policies, where you are ensuring your child receives a sum of money at a certain pre-defined age, this will ensure that the process is uninterrupted and premium payment is continued.
Along with above benefits, such riders are also makes you eligible to claim tax deductions. The premium paid towards such riders are also qualifies for tax deduction under section 80D of the Income Tax Act.