Future premiums waived on proposer's death. For child plans.
Last updated · 5.0/5 · Non-negotiable on any child plan where the proposer and life assured are different. The most important rider in LIC's catalogue for its use case.
Pure protection add-on — your base policy maturity is unaffected.
This rider pays only when a qualifying event occurs (death, disability, or diagnosis). If no claim event happens,
the rider expires at the end of its term. Your base policy's maturity amount, bonuses, and sum assured remain
exactly as projected — riders buy protection, not yield.
What this rider does
LIC's Premium Waiver Benefit Rider (UIN 512B204V04) waives all future premiums on the base policy if the proposer (the parent or guardian paying the premiums) dies during the rider term. The life assured (typically a child) does not need to continue paying — the base policy stays in force exactly as if premiums were being paid, and the child receives the full maturity benefit on schedule. This rider has no maturity benefit and no surrender value. It pays only on the proposer's death; if the proposer survives the rider term, the rider expires with nothing paid out and the base policy is completely unchanged.
UIN
512B204V04
Indicative rate
₹2/1,000 SA/yr
SA cap
1× base SA
Can add later?
Yes — anytime
Full rider details
Exactly when it pays
The proposer (premium payer) dies for any reason during the rider term. From that date, LIC waives all remaining premiums on the base policy for the remainder of the premium-paying term. The base policy remains fully in force — bonuses continue to accrue, the guaranteed additions (for non-par plans) continue to vest, and the life assured receives the full contractual maturity proceeds on the originally scheduled maturity date. LIC effectively becomes the premium payer in the proposer's place.
When it does not pay
Proposer survives the rider term — the rider expires with no payout, which is the desired outcome. Proposer disability (no disability trigger; only death). Base policy has already lapsed before the proposer's death. Fraudulent non-disclosure at inception (health or financials). The rider terminates when the proposer reaches age 70, when the premium-paying term of the base policy ends, or on the proposer's death — whichever is earliest. If the proposer's age + rider term exceeds 70, the rider is simply not available.
The disability gap and how to address it
PWB's single structural weakness is that it covers only death, not permanent disability. A parent who is paralysed in an accident is still alive — the child plan premiums keep falling due with no waiver. The correct fix is a separate personal accident policy on the proposer's life (available from general insurers for ₹3,000–5,000/year for ₹1 crore cover) that includes a permanent disability income stream. The PA policy covers disability; PWB covers death. Together they form a complete parent-protection wrapper around the child's savings goal.
Who should get this rider
PWB is exclusively relevant when the proposer and life assured are different people — most commonly a parent buying a child plan (Amritbaal 774, Jeevan Tarun, etc.) where the child is the life assured and the parent pays the premiums. For any adult buying a policy on their own life (proposer = life assured), PWB has no function and should not be purchased. If you are a parent buying a child plan, PWB is non-negotiable: skipping it to save ₹1,000–3,000/year means that if you die before the premium-paying term ends, the policy lapses and your child loses the entire accumulated benefit. The rider is also relevant for couples where one spouse buys a policy on the other's life and is the sole premium payer.
Tax treatment
PWB premiums paid by the proposer count within the §80C ceiling (₹1.5L per year, shared with base-policy premium). The premium waiver benefit itself — LIC absorbing future premiums on the proposer's death — is not a cash payout to the proposer or nominee; it is simply a discharge of the premium obligation. There is no separate tax event at the point of waiver. The life assured continues to receive the base policy maturity tax-free under §10(10D) provided the original 10× condition was met at inception. From 22 September 2025, life insurance premiums (including riders) attract 0% GST.
Asymmetrica isn't an insurance advisor. The analysis above is editorial, sourced from published LIC brochures.
Verify eligibility, current rates, and plan-specific conditions with LIC or a licensed advisor before purchasing.