Since many of the current products have their own insured waived, issues discussed is what needs to be paid attention to in the configuration of policyholder waiver clause.
01. Increased premium budget
The policyholder waiver requires extra money paid, so you should properly consider your own premium budget when applying for insurance.
And the fees vary according to age, waiver amount, and insurance period. Fees are lower when you are young and can usually account for 10-15% of your premiums when you are older.
The policyholder waiver of premium itself is a supplement to the policyholder's critical illness insurance limit.
Therefore, if the policyholders already have sufficient critical illness insurance coverage, they can pay for the insured’s premium with their claim for critical illness insurance even without a waiver of premium for policyholders.
02. Policyholder’s Statement of Health
Because the policyholder waiver of premium rider is similar to the policyholder buying a critical illness insurance for themselves, many products require the policyholder to state their health.
Generally, both the insurer and the insured need to fill out the same health statement questionnaire, and the review standards are also the same.
If the insurer cannot pass the review, the policyholder waiver of premium rider is no longer an option.
03. Accumulated insured amount of critical illness occupied
Some critical illness insurance products on the market will accumulate the policyholder’s waiver rider sum assured. With this limit on the cumulative sum assured, the amount waived will affect the purchase of the maximum insured amount of critical illness insurance.
However, there are some products that do not have this restriction. Pay attention to such clause can help with your configuration.
04. Payment period
Although the premium waiver is a humanized clause, it is not guaranteed for life.
Therefore, if you choose the additional waiver of premium rider, the longer the payment period the better. After all, the longer the period, the more likely you get the waiver of premiums, and hence the possibility of relatively more waived fees.
Not only is there the possibility to pay the same amount of money with less value due to inflation, but the annual payment pressure is reduced, so that the same budget can cover a higher amount insurance.
To sum up, waiver of premium is indeed a clause with feasibility, but it is not the most important factor we should consider when buying insurance.
It’s important to buy high sum assured and full coverage, but every coverage is related to premium expenses, and the accompanying premium waiver is just the icing on the cake.
If you don’t know whether you want to waive your liability for additional premiums when you apply for insurance, you are always welcome to turn to a professional, arranging your own one-on-one insurance planner.