Life Insurance Corporation of India (LIC) offers various riders that enhance the benefits of life insurance policies. One such important rider is the Premium Waiver Benefit Rider (PWB Rider), designed to reduce the financial burden on policyholders and their families during difficult times.

What is LIC Premium Waiver Benefit Rider?

The LIC Premium Waiver Benefit Rider is an optional add-on or rider attached to a base life insurance plan. If the proposer (the person whose life is insured and who pays premiums) passes away during the rider’s term, LIC will waive all future premiums payable on the base policy for the rest of the premium-paying term. This means the family or nominee does not need to worry about paying the remaining premiums to keep the life insurance policy active.

This rider is particularly helpful if the policyholder’s unexpected demise creates financial difficulty in continuing premium payments for the life insurance plan.

Launch Date of LIC Premium Waiver Benefit Rider

The LIC Premium Waiver Benefit Rider was launched on February 1, 2020. Since then, it has been offered as a valuable option to LIC policyholders to safeguard their insurance plans even if they face adversity during the policy term.

Who is Eligible to Choose This Rider?

Eligibility criteria for LIC Premium Waiver Benefit Rider include:

• Minimum entry age: 18 years (completed)
• Maximum entry age: Usually up to 55 years (nearest birthday)
• The rider can be opted at the inception of the base policy or any time during the premium paying term of the base plan, provided that the outstanding premium paying term of the base policy and rider is at least 5 years.
• The age plus the rider term should not exceed 70 years.
• Available for individual life insurance plans where LIC permits this rider as an add-on.

The rider is non-linked and non-participating, meaning it does not contribute to bonus or profits of the corporation.​

Key Benefits of LIC Premium Waiver Benefit Rider

The benefits of this rider can be summarized as follows:

• Death Benefit: If the proposer dies during the rider term, LIC will waive all future premiums payable under the base plan after the date of death till the expiry of the rider term.
• No maturity benefit: The rider itself does not provide any maturity or survival benefits.
• Continuity of base plan: The base policy remains active and benefits such as sum assured are paid out on maturity or death (depending on the base plan terms).
• No waiver on other riders: Premiums for other riders attached to the base plan, except Premium Waiver Benefit Rider, shall continue to be payable.
• Rider termination: The rider terminates on the earliest of the death of proposer, expiry of the rider term, or if the base policy terminates or is converted to paid-up.
• No surrender value or loan: This rider does not have paid-up value, surrender value, or loan facility.​

How Does LIC Premium Waiver Benefit Rider Work?

This rider works by waiving future premiums after the unfortunate event of the policyholder’s death during the rider term. Here’s a simple explanation:

• You buy a base policy from LIC and opt for this rider either at inception or during the policy term.
• You pay premiums for the base plan and the rider (additional premium for rider).
• If the proposer survives the rider term, no benefits are paid under the rider alone (it ends with no maturity benefit).
• If the proposer dies during the rider term, LIC waives all future premiums payable on the base plan for keeping the policy active till maturity.
• The base plan benefits such as sum assured or maturity amount are paid normally to the nominee.
• This rider brings financial relief to families by allowing them to retain the insurance cover without paying future premiums.​

Why Should You Opt for LIC Premium Waiver Benefit Rider?

The Premium Waiver Benefit Rider offers financial security by eliminating the burden of premium payments during difficult times. Here are some reasons why it is worth considering:

• Protects your family: Ensures that your life insurance policy remains active even if you pass away early, without your family struggling to pay premiums.
• Saves future premiums: Waives off a significant financial burden if the proposer dies during the policy term.
• Affordable: The rider premium is reasonably priced based on your age and policy term.
• Flexibility: You can opt for this rider at policy start or during the premium paying term.
• Peace of mind: Helps secure your insurance investment and family’s financial future.​

How to Calculate LIC Premium Waiver Benefit Rider Premium?

The premium for this rider depends on several factors, including:

• Proposer’s age at entry
• Term of the rider (usually aligning with the base plan’s premium paying term)
• Sum assured or benefits of the base plan
• Premium payment mode (yearly, half-yearly, quarterly, or monthly)

Since riders are calculated as an additional premium over the base plan, the cost varies with age and term.

LIC Premium Waiver Benefit Rider Calculator: What Is It?

An LIC Premium Waiver Benefit Rider Calculator is an online tool that allows potential buyers and policyholders to estimate the premium payable for this rider easily. By entering basic inputs such as proposer’s age, rider term, and premium mode, the calculator provides an estimated amount of premium payable annually or per the chosen mode.

This helps users:

• Understand the additional cost of opting for the rider.
• Make informed decisions while purchasing LIC plans.
• Compare premium costs for different ages and terms.
• Plan finances effectively by evaluating total premium payments.

Such calculators are widely available online and are user-friendly.

How to Use the LIC Premium Waiver Benefit Rider Calculator?

Using the calculator is simple. Typically, you need to:

1. Enter the proposer’s age at entry.
2. Choose the rider term (usually aligning with the base plan’s premium paying term).
3. Select premium payment mode (annual, semi-annual, quarterly, or monthly).
4. Submit or calculate.

The calculator will then estimate the rider premium payable, helping you understand the extra cost involved.

Sample Premium Rates of LIC Premium Waiver Benefit Rider

Here are some example annual premiums paying for this rider for every Rs. 100 premium waived on the base plan for some ages and terms:

Rider Term (years)	Age 18-25	Age 26-30	Age 31-35	Age 36-40	Age 41-45	Age 46-50	Age 51-55
5	1.45	1.45	1.55	1.75	2.05	2.70	3.65
10	1.85	1.90	2.15	2.65	3.60	5.20	–

Note: Premium rates are approximate and for illustrative purposes only. Actual rates depend on LIC policies at the time of purchase.​

Important Terms and Conditions

• The rider premium can be paid only along with the premium for the base policy; separate payment is not allowed.
• Grace period for premium payment is as per the base policy.
• The rider terminates on earliest of death of proposer, expiry of rider term, or termination/paid-up status of the base plan.
• If the base plan premium paying term exceeds the rider term, future premiums beyond the rider term are payable.
• The rider does not have cash surrender or loan value.
• Riders other than the premium waiver rider attached to the base plan need separate premium payments.

Frequently Asked Questions

Summary

The LIC Premium Waiver Benefit Rider is a valuable add-on that waives future premium payments under the base plan if the proposer dies during the rider term. Launched on February 1, 2020, it provides financial relief to the families of policyholders by ensuring that life insurance remains active without additional premium burden after the proposer’s demise.