LIC Premium Waiver Benefit Rider: Features & Benefits

Overview

The Premium Waiver Benefit (PWB) offered by the Life Insurance Corporation of India (LIC) waives all future base plan premiums if the proposer dies during the rider policy term.

Key Details and Eligibility

How It Works: The rider is attached as an add-on to the base policy for an additional premium.
Eligibility Criteria: Must be between 18 and 55 years old. The maximum age at maturity is 70 years.
Minimum Term: The outstanding Premium Paying Term (PPT) of the base policy must be at least 5 years.

At Ditto, we especially recommend it for child plans such as LIC Amritbaal, LIC Jeevan Tarun, and LIC New Children’s Money Back Plan, where a parent is the proposer.

Note: LIC’s rider does not waive premiums on diagnosis of a critical illness or accidental disability, unlike those offered by insurers such as Axis Max Life or HDFC Life.

Imagine you've paid premiums for five years on your child's plan, and then something happens to you. Does your child still get the payout at 18 or 25? Not automatically because someone else has to keep paying, or the policy risks lapsing right when your family needs it most.

This is where the LIC Premium Waiver Benefit rider steps in. In this article, we'll walk you through what the rider means, how it works, its key features, eligibility, premium rates, and where it won't apply.

What Is the LIC Premium Waiver Benefit Rider?

The LIC Premium Waiver Benefit rider (UIN: 512B204V04) is an optional add-on you can attach to an eligible LIC base policy. If the proposer (usually a parent) dies during the rider term. LIC waives every future premium due on the base policy.

Note: The rider is issued on the proposer's life, not the child's, since the child is usually a minor.

Meaning of Premium Waiver Benefit in LIC

In plain language, the premium waiver benefit meaning is simple: LIC forgives your remaining premiums after a trigger event (the proposer's death) and continues the policy as if nothing changed.

This differs from the base plan's maturity or death benefit, since the rider itself pays out nothing. It only removes the future premium burden.

Key Features of the LIC Premium Waiver Benefit Rider

Doesn't change the maturity or death benefit amount promised under the base plan.
Can be added at policy inception or later, as long as at least 5 years of Premium Paying Term (PPT) remain on both the base policy and the rider.
No maturity benefit, no surrender value, and no loan facility on the rider itself.
Rider premium is billed with your base plan premium and can't be paid separately.
Doesn't waive premiums for any other rider attached to the same policy.

Note: The premium paid for the rider qualifies under Section 123 of the Income-tax Act, 2025, which replaced the earlier Section 80C framework as of April 1, 2026. Eligibility depends on the applicable tax regime, the payer and insured person, the aggregate ₹1.5 lakh limit, and statutory premium-to-sum-assured conditions.

Eligibility Criteria, Entry Age, & Rider Term

Entry Age: 18 years to 55 years.
Maximum Maturity Age (Cover Ceasing Age): 70 years.
Rider Term: The lower of (a) the outstanding PPT of the base policy, or (b) 25 minus the child's current age, subject to a minimum outstanding term of 5 years.

Premium Rates and Sum Assured Limits

LIC prices this rider to waive every ₹100 from your annual base premium. As you can see below, a 32-year-old proposer choosing a 15-year rider term pays around ₹3.30 per year for every ₹100 of premium waived. For example, if a person is paying ₹1 lakh in annual premiums, the cost of premium waiver rider will be ₹3,300.

It’s calculated as ₹3.30 × (₹1,00,000 ÷ ₹100) = ₹3,300.

Rider Term	Up to 25 years	26-30	31-35	36-40	41-45	46-50	51-55
5	1.70	1.70	1.85	2.10	2.45	3.10	4.10
10	2.20	2.25	2.55	3.10	4.05	5.75	8.15
15	2.60	2.80	3.30	4.35	6.10	8.90	12.75
20	3.05	3.45	4.25	5.85	8.40	12.35	-
25	3.50	4.15	5.40	7.65	11.05	-	-

Older proposers and longer rider terms cost more, since LIC commits to waiving premiums for longer. Moreover, there’s no separate minimum or maximum sum assured here. It simply equals the total future base policy premiums that the rider protects, automatically scaling with your policy’s size.

Note: There is no GST on rider or base premiums in life insurance.

Exclusions and Situations Where the LIC Premium Waiver Won't Apply

Suicide within 12 months of the rider starting or reviving. In this scenario, the rider becomes void, and the base plan premiums aren’t waived. However, 80% of the rider premiums get refunded.
If the base policy lapses or is paid up, the rider’s benefit also ceases to apply.
The rider covers only the proposer’s death. It doesn’t cover critical illness, accidents, or disabilities.
If the base plan’s PPT is longer than the rider term, you’ll need to resume paying premiums yourself once the rider term ends.
No waiver on premiums for any other rider attached to the same base policy.

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Conclusion

The LIC Premium Waiver Benefit is a low-cost way to ensure your child’s financial goals aren’t dependent on your own life expectancy. If you’re the sole proposer on a child’s plan, adding it is usually worth the small extra premium.

At Ditto, a waiver of premium rider is one of our recommendations. That said, LIC’s rider doesn’t add any extra life cover or provide help with critical illness or disability, unlike those offered by other insurers such as Axis Max Life or HDFC Life. Moreover, it isn’t offered with LIC’s term insurance plans.

Frequently Asked Questions

Is the LIC Premium Waiver Benefit Rider worth adding to a child insurance plan?

It is generally useful when one parent is primarily responsible for paying the child plan’s premiums and the family may struggle to continue them after that parent’s death. LIC would waive qualifying future base-policy premiums until the rider expires. However, the rider does not provide a lump-sum payout, cover disability or critical illness, or waive premiums for other riders. Always check whether the rider term covers the entire base-plan premium paying term before purchasing it.

What happens to a child plan if the parent dies and the LIC premium waiver benefit rider is active?

Once LIC admits the rider claim, base-policy premiums falling due on or after the proposer’s death are waived until the rider term ends. The underlying child plan continues according to its terms, and its scheduled survival, maturity, or death benefits do not reduce merely because the rider was triggered. Premiums for other riders are not waived. If the base plan’s premium paying term extends beyond the PWB rider term, premium payments must resume after the rider's expiry.

Which LIC child plans allow you to add the premium waiver benefit rider?

LIC’s current dedicated child plans that permit the rider include LIC Amritbaal, LIC Jeevan Tarun, and LIC New Children’s Money Back Plan. The rider may also be available under certain other LIC savings plans where the life assured is a minor. Availability, premium-payment options, rider caps, and eligibility differ by base plan and product version. Therefore, check the latest brochure and UIN for the selected base policy rather than relying on an older plan list.

Can I add the LIC Premium Waiver Benefit Rider midway through my policy term?

Yes, but only under an eligible in-force policy and subject to LIC’s conditions. For an existing policy, the rider can ordinarily be added on a policy anniversary during the base plan’s premium paying term. At least five years must remain under both the outstanding base premium paying term and the proposed rider term. The life assured must still be a minor at the time the rider is chosen. LIC may also require fresh underwriting, medical examinations, or additional reports.

Does the LIC Premium Waiver Benefit Rider cover critical illness or only the death of the proposer?

It covers only the proposer’s death during the rider term. LIC’s current Premium Waiver Benefit Rider, UIN 512B204V04, does not trigger merely upon the proposer developing a critical illness, suffering an accident, becoming disabled, or losing employment. Those events require a separate waiver rider or, where available, an insurance benefit.

Is the premium paid for the LIC Premium Waiver Benefit Rider eligible for a tax deduction?

It qualifies, but the deduction is not automatic. From April 1, 2026, Section 123 of the Income-tax Act, 2025 replaced the earlier Section 80C framework. Eligibility depends on the applicable tax regime, who pays the premium, whose life is insured, the aggregate ₹1.5 lakh limit, and statutory premium-to-sum-assured conditions. Taxpayers using the default new tax regime generally cannot claim the conventional life-insurance deduction. Obtain tax advice for the specific policy structure from a professional.

Does the maturity payout change if the LIC premium waiver benefit is triggered?

No. Triggering the rider does not, by itself, reduce the maturity or survival benefits promised under the base policy. LIC waives eligible base-plan premiums due after the proposer’s death until the rider expires, while the base policy continues according to its terms. The rider itself has no separate maturity value, paid-up value, surrender value, or loan benefit. Any payout remains subject to the base policy’s conditions and to the policy's continued eligibility for the stated benefit.

Last updated on: 19 Jul, 2026