Is there a time frame for how long a term insurance policy's Waiver of Premium rider will cover premium payments?

Yes, there is a 90-day waiting time. It indicates that the insurer will only waive future premiums if the insured develops a severe illness or becomes disabled after the policy's initial 90 days have passed.

How long must I be disabled before the term insurance policy's Waiver of Premium rider kicks in?

Usually, a waiver of the premium clause only becomes effective if your disability will last at least six months. Both long-term and short-term disability insurance is offered, with the former commencing at about three months.

After obtaining my term insurance policy, Can I add a waiver of premium?

No, you cannot add a waiver of premium after getting term insurance coverage. It must be acquired when the term insurance policy is bought or as an add-on rider later in the term. Including the waiver of premium benefit to your term insurance plan when you first acquire the policy is preferable to ensure you have the coverage in place when you need it.

Does waiver of premium cover all types of illnesses or disabilities?

As the policy specifies, the premium waiver usually only applies to certain diseases or impairments. These conditions, including serious injuries or chronic illnesses, would frequently preclude the policyholder from working and earning a living. To comprehend what it covers, it is crucial to carefully read the premium rider's terms and conditions waiver.

Waiver of Premium Rider in Term Insurance: Ditto 2025

What is the Waiver of Premium Rider?

A Waiver of Premium Rider in term insurance ensures that your future premiums are waived if you’re diagnosed with a critical illness or suffer a total and permanent disability. However, your life cover continues without interruption. In simple words, you stop paying, but your policy stays active. It acts as your family’s financial safety net during the exact period when income becomes uncertain due to health setbacks.

Term insurance is meant to be your family’s safety net when life throws a curveball. But what if you fall seriously ill or suffer a disability that affects your income? In moments like these, even paying your policy premiums can feel overwhelming, and missing them could put your entire life cover at risk.

That’s exactly why the waiver of premium (WOP) rider exists. In this blog, we’ll break down how the WOP rider works, which plans offer it, key features, claim requirements, documents needed, and whether it’s truly worth adding to your term plan.

Popular Term Plans with the Waiver of Premium Rider

HDFC Life Click 2 Protect Supreme

This plan offers the most comprehensive waiver of premium rider, covering 60 illnesses, including disabilities, for the entire policy term.

Bajaj Allianz Life eTouch II

It provides a free in-built waiver of premium benefit that automatically waives premiums on Accidental Total and Permanent Disability (ATPD), and also includes coverage for terminal illness.

Axis Max Life Smart Term Plan Plus

This plan offers a waiver of premium rider on 11 critical illnesses and 4 disabilities, but only if the premium payment term is 15 years or less. It only waives premiums up to a maximum of ₹25 lakhs worth of premiums.

TATA AIA Sampoorna Raksha Promise and Maha Raksha Supreme Select

These plans offer a waiver of premium rider on 40 critical illnesses, along with coverage for Accidental Total and Permanent Disability, for dual protection.

Aditya Birla Sun Life Super Term Plan

It offers a waiver of premium benefit only on ATPD. For a 25-year-old seeking ₹1 crore coverage till age 65, the total yearly premium is ₹10,577.73, and ₹477.73 accounts for the WOP rider cost.

Key Features of the Waiver of Premium Rider

Once the claim is approved, all future premiums are waived while your life cover continues normally.
Medical emergencies often come with reduced income. Missing premium payments can cause policy lapse; this rider prevents that.
Depending on the insurer, the rider may cover anywhere from 11 to 60 critical illnesses and accidental disabilities.
Some plans (like Bajaj eTouch II) offer it in-built; others allow you to add it at purchase.
WOP premiums are usually low compared to the base plan, often between ₹50 and ₹300 per month.

Note: The cost of the WOP rider depends on your premium payment term (PPT), not just the policy term. With regular pay, the insurer may need to waive premiums for 30–40 years, so the rider becomes more expensive. In limited-pay options (like 5-pay or 10-pay), the risk window is much shorter. Once premiums are fully paid, there’s nothing left to waive, so the WOP rider costs significantly less.

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Waiver of Premium Claim Requirements

For the WOP rider to apply, insurers typically require the following conditions to be satisfied:

Diagnosis of a listed critical illness, or
Accidental total and permanent disability, or
In some plans, a terminal illness diagnosis
Completion of the survival period (usually 14–30 days)
Rider must be active and the policyholder must have completed the waiting-period conditions (30 days - 6 months)
The policyholder submits the correct documents. We’ve also included a section below on what these documents are.

Quick Note: Loss of income is not a trigger for the Waiver of Premium rider in term insurance.

How Does the Waiver of Premium Rider Work?

You buy a term plan and add the waiver of premium rider (or opt for a plan where it is in-built).
Continue paying premiums normally.
If you’re diagnosed with a covered critical illness or suffer an accidental disability:
1. Inform the insurer
2. Submit medical documents
3. Complete survival/waiting period conditions
Once approved, the insurer waives all future premiums until the end of the policy term and gives you a written confirmation stating the same.
Your life cover remains intact, so your nominee still gets the full sum assured in case of death.

Most importantly, the rider does not pay you money, it simply removes your obligation to pay premiums.

Documents Required for Waiver of Premium Rider Claim Settlement

Rider-specific claim form
Critical illness diagnosis report/disability certificate
Treating doctor’s certificate
Hospitalization records
KYC documents of the life assured
Policy document / e-policy copy
FIR or accident reports (for disability cases)
An independent, second medical confirmation may be required.

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Conclusion

A waiver of premium rider is one of the most cost-effective protections you can add to your term insurance plan. At Ditto, we consider it to be a must-have rider for anyone buying term insurance. A critical illness rider comes second, but both should be chosen after carefully reviewing the claim terms, eligibility conditions, age limits, and your health profile.

For most people, especially sole earners, a waiver of premium rider is absolutely worth adding to your policy.

Frequently Asked Questions

Does the waiver of premium rider increase my term insurance premium significantly?

Not really. The WOP rider is usually one of the most affordable add-ons, often costing just a small percentage (Usually under 20%) of your base premium. In many cases, the yearly cost is between ₹1,000 and ₹5,000, depending on age, health, and the insurer. For the protection it offers, it’s extremely cost-effective.

Will the WOP rider cover all types of critical illnesses and disabilities?

No. Each insurer has a specific list of critical illnesses and their definitions. Disabilities are usually covered only if they qualify as Accidental Total & Permanent Disability (ATPD). Always check the list of covered illnesses and severity conditions before choosing a plan.

If my WOP claim is approved, do I need to renew the rider every year?

No. Once a WOP claim is accepted, the rider remains active automatically. All future premiums (for both the base plan and riders) remain waived for the rest of the policy tenure unless stated otherwise in your specific policy terms.

Can a WOP claim be rejected? What are common reasons?

Yes, a WOP claim can be rejected if the illness isn’t part of the covered list, if the claim is made during the waiting period, or if the survival period isn’t met. Claims can also be denied for undeclared pre-existing illnesses or if the disability doesn’t qualify as “total and permanent ”in nature. Reading the rider’s terms carefully helps avoid these issues.

Should I buy the critical illness rider if I already have the WOP Rider?

Yes. The WOP rider keeps your policy active by waiving premiums, while the Critical Illness rider gives you a lump sum to handle medical and financial expenses. Since they serve different purposes, Ditto usually recommends taking both if you’re eligible and it fits your budget.

Can I add the rider later?

Insurers usually allow adding riders only at inception; some may allow later addition with fresh underwriting. It depends on the product.

If I recover, do I start paying premiums again?

Typically, no. Once triggered, future premiums stay waived, and the rider coverage ends. The base policy continues.

Last updated on: 1 Dec, 2025

What is the Waiver of Premium Rider in Term Insurance?