When purchasing major illness insurance and educational fund insurance products, remember to screen for products that include waiver clauses. The waiver clause in children's insurance means that under general regulations, if the policyholder encounters an accident or loses their ability to pay premiums for other reasons, they can be exempted from paying any unpaid premiums within the contract period, and the insurance for the insured person remains valid.
Children's insurance usually has a waiver clause
The waiver clause is the biggest selling point that various companies promote when advertising children's insurance. Many companies offer optional child insurance premium waiver clauses for parents to choose from. Some companies have also started offering main clauses that already include waiver clauses, meaning that within the contract period, should the policyholder unfortunately pass away or become completely disabled, the child's insurance plan will still provide effective coverage until the age of 18, with all due premiums being fully waived. Most children's insurance products from companies like Ping An Insurance, Taikang Life, and Taiping Life also include waiver clauses.
Adding a waiver clause requires additional premiums
Of course, premium waivers are not free lunches provided by insurance companies. Whether it appears as a rider or directly in the insurance contract terms, the policyholder must pay a premium for this extra protection. For example, 30-year-old parents buying life insurance for their child, with an annual premium of 5,000 yuan, adding a waiver clause would increase the annual premium by 200-300 yuan.
Different insurance companies define waivers differently. Some companies stipulate that whether the policyholder dies or becomes completely disabled due to an accident or illness, they can be exempted; some waiver clauses specify that only death of the policyholder leads to exemption; while others specify that only accidental death qualifies for exemption, with death due to illness or complete disability not included in the exemption scope. Parents should best clarify the specific waiver clauses when choosing.
Additionally, the benefit of the waiver is the non-payment of premiums. However, for ordinary consumption-type accident insurance and medical insurance, the premiums themselves are very low, and when the conditions for exemption are met, it often also meets the contract claims standard, or after claims, the insurance company does not renew the policy, so adding a waiver benefit makes little sense. Therefore, it is most advantageous to attach the waiver to the most expensive products that can be returned in the future, with the best pairing being children's education savings insurance.
■ Related Links
Pension insurance and others also have waiver clauses
Following the introduction of waiver clauses in children's insurance, pension insurance, lifetime insurance, and endowment insurance have also launched waiver clauses. Waiver premium clauses include two types: policyholder waiver of premiums and insured person waiver of premiums. Policyholder waiver of premiums refers to when the policyholder completely loses their labor capacity due to an accident or illness, the insurance company waives the policyholder's due premiums, keeping the insured person's protection rights valid. This situation applies when parents buy insurance for their children.
The insured person's waiver of premium clause refers to the insured person completely losing their labor capacity due to an accident or illness, and the insurance company waiving their due premiums. This clause is more suitable when the policyholder buys insurance for themselves. For instance, some pension insurances include "waiver of premium" clauses, clearly stating in the insurance liabilities: during the validity of the contract and before the insured reaches 60 years old, if the insured suffers from the disability specified in the contract and remains disabled, the insurance company will start waiving premiums from the first premium due date after receiving the claim application and confirming the insured's disability. During the period of premium waiver, the insurance contract remains valid.