The Tata AIA Life Insurance Waiver of Premium (Linked) Rider is an optional rider than policyholders can purchase along with their base policy. This linked rider ensures that the policy benefits and life cover of the base policy do not get disrupted, even if the policyholder is not able to pay his/her due premiums due to an illness/accident that causes permanent and total disability.
This rider can only be purchased along with individual, linked policies offered by Tata AIA Life Insurance Company. The insurer will cancel units from the unit fund of your main policy as the rider charge. By purchasing this rider, you will be eligible for tax benefits, under the prevailing laws of the Income Tax Act, 1961.
In order to purchase this policy, you will have to meet certain requirements that are set by the insurer, such as:
|Parameters||Criteria for eligibility|
|Minimum age at entry||Minimum age at entry will be the higher of:
|Maximum age at entry||Maximum age at entry will be lower of:
|Maximum age at maturity||Maximum age at maturity will be lower of:
When you purchase the Waiver of Premium (Linked) Rider, the minimum/maximum sum assured will be the total value of all your future premium payments towards the base policy which you do not pay. Therefore, with this rider, all your future premiums will be waived off.
You will not have to pay additional premiums for the Tata AIA Life Insurance Waiver of Premium (Linked) Rider. The units from your base policy fund will be cancelled by the insurer as the rider charge.
|Minimum Rider Term||5 years|
|Maximum Rider Term||Maximum rider term will be either one of the two listed below, based on which occurs first:
|Term for Rider Charge Deduction||Same as the life assured’s Maximum Rider Term.|
The Waiver of Premium (Linked) Rider is a unit deducting rider. The coverage for this rider is equal to the Premium Payment Term that you opted for, while purchasing the base policy. The insurer will cancel the units from your unit fund as the charge for this rider. The key benefit of this rider is that, should you happen to meet with an accident or a severe illness and are unable to pay your base policy premiums, Tata AIA Life will waive of all the remaining base policy premiums and stop charging you for this rider until the end of the premium paying term of the main plan or till you turn 65. However, no maturity or surrender benefit is payable, under this policy.
If the life assured suffers from Total Permanent Disability due to any of the occurrences/incidents listed below, the insurer will not waive off any future premium payments of the policyholder. The exclusion criteria for the Waiver of Premium (Linked) Rider are:
|Criteria for Total Permanent Disability (TPD)||The life assured will be considered to be permanently disabled if he/she meets any one of the criteria listed below: Criteria 1: Life assured is unable to continue his/her employment, or the disability has lasted a minimum of 12 months continuously. Criteria 2: Life assured has lost the use of two limbs, both eyes, or one limb and sight in one eye. Criteria 3: Life assured can’t live independently anymore, and can’t perform at least 3 of the following tasks – dressing, feeding oneself, bathing, maintaining hygiene, getting in and out of bed, and getting to different rooms.|
|Grace period||There is no grace period applicable for this rider.|
|Termination of Policy||This rider will be terminated if:
|Lapse of Rider||If you miss out on paying the due premiums of your basic policy, this rider will lapse.|
|Addition/Deletion of Riders||This rider should be purchased along with your base policy. However, you can delete the rider any time.|
|Free-look period||The free-look period of your base policy will apply to this rider, too.|
|Policy Revival/Reinstatement||As per policy terms in your base policy.|
|Loans||The life assured can’t take a loan against this policy.|
|Surrender Benefit||There is no Surrender Value for this rider.|
|Nomination||Nomination is allowed under Section 39 of the Insurance Act, 1938.|
|Assignment||Assignment facility is provided, as per Section 38 of the Insurance Act, 1938.|
|Suicide||If the life assured commits suicide within 12 months of the purchase/reinstatement of this rider, Tata AIA will not be liable to pay any benefit.|
All premiums paid by you towards this rider are eligible for tax benefits, as per the prevailing laws of Section 80D of the Income Tax Act, 1961.
Apart from the many benefits of purchasing this rider, the advantages of being a member of Tata AIA Life Insurance Company are:
A life insurance policy can help you secure the life of your dependants, should something happen to you in the future. However, if the life assured himself/herself were to suffer from an illness/accident and is unable to pay their due premiums towards their basic life insurance policy, then what would happen? With the Tata AIA Life Insurance Waiver of Premium (Linked) Rider, you can ensure that even if something unfortunate happens to you, your life insurance benefits and basic policy cover will continue to stay active.
Tata AIA Life Insurance Company is a joint venture between Tata Sons Ltd. and AIA Group Ltd. The insurer has an extensive reach in the Asia-Pacific region, with a presence in 18 markets. The insurer’s Claim Settlement Ratio for the financial year 2015-2016 is 96.8%. The company has various Customer Service channels which allows customers to reach them, as per their convenience. The insurer was also awarded in Golden Peacock Award in the year 2016 for Risk Management.