LIC Premium Waiver Benefit Rider Calculator: Rider Premium, Benefit and Eligibility

What is the LIC Premium Waiver Benefit Rider?

The LIC Premium Waiver Benefit Rider (often called the PWB rider) is a non-linked, non-participating add-on that you attach to an eligible LIC policy. It protects one specific risk: the person paying the premiums dies before the payments are finished.

This matters most for policies bought on a child’s life. A parent (the proposer) takes a policy for a child and pays the premiums. If the parent dies, the family may struggle to keep paying and the policy could lapse. With this rider, LIC waives all remaining premiums from the date of death until the end of the rider term. The policy keeps running, and the child still receives every benefit it was bought for.

LIC introduced this version of the rider on 1 February 2020, and it is available with base plans that allow it.

Premium Waiver Benefit Rider at a glance

Feature	Details
Type	Non-linked, non-participating individual rider
Who is covered	The proposer (premium payer), not the life assured
Benefit	Waiver of all future base-plan premiums after the proposer’s death
Rider sum assured	Total of future base premiums over the rider term
Rider term	Outstanding premium paying term of the base plan (minimum 5 years)
Maturity / surrender / loan	None
When to add	At the start or during the premium paying term
GST	Nil from 22 Sep 2025

Eligibility

Criteria	Minimum	Maximum
Proposer’s age at entry	18 years	55 years
Proposer’s age at rider maturity	—	70 years
Rider term	5 years	Remaining premium term of the base plan
Rider sum assured	Sum of future base premiums	Sum of future base premiums

How the rider premium is calculated

The rider is priced per ₹1,000 of rider sum assured. The rate rises with the proposer’s age and with the length of the rider term. The calculator:

1. works out the rider sum assured = base yearly premium × rider term;
2. looks up the rate per ₹1,000 for the proposer’s age and term, interpolating between table points;
3. multiplies to get the yearly rider premium, and converts it to half-yearly, quarterly or monthly if needed.

Worked example 1: a 35-year-old parent pays ₹50,000 a year for a child’s policy with 15 years of premiums left.

Item	Amount
Rider sum assured	₹7,50,000
Rider premium	₹1,620 a year (₹143 a month on monthly mode)
Total rider premium over 15 years	₹24,300
Premiums waived if the parent dies in year 1	₹7,00,000

Worked example 2: a 30-year-old parent with a ₹30,000 base premium and 18 years to go pays about ₹1,076 a year for the rider. If the parent dies in the first year, ₹5,10,000 of future premiums are waived.

The chart below the calculator shows yearly rider premiums for a ₹50,000 base premium across ages and terms. For example, a 25-year-old with 10 years left pays about ₹520 a year, while a 45-year-old with 20 years left pays about ₹4,580.

Tip: add the rider at the start of a child policy. The rider term is then the full premium term, and the rate is fixed at your current age.

What the rider pays and when

• Proposer dies during the rider term: all base-plan premiums due after the death are waived until the rider term ends. The base policy continues as if premiums were being paid, including bonuses where applicable.
• Proposer survives the rider term: nothing is paid by the rider. It simply ends.
• Rider ends early if the base policy lapses, becomes paid-up or is surrendered.

The year-wise table in the calculator shows how much the family would save if the proposer died in any given year.

Things the rider does not do

• It does not pay a lump sum. The benefit is only the waiver of premiums.
• It does not waive premiums for other riders on the same policy.
• It has no surrender value, paid-up value or loan.
• It covers death of the proposer, not illness or disability.

Tax benefits

The rider premium is added to the base premium for Section 123 of the Income-tax Act, 2025 (earlier Section 80C) deduction under the old tax regime, within the overall ₹1.5 lakh limit. There is no GST on individual life insurance premiums, including riders, from 22 September 2025. Before that, rider premiums carried GST at the applicable rate.

Should you take the Premium Waiver Benefit Rider?

It makes sense if:

• you are buying a child plan such as LIC Amritbaal 774 or LIC Jeevan Tarun 734 and you are the only earning parent;
• the base premium is a large share of your income, so your family would struggle to continue it;
• you want the child’s goal (education, marriage) to stay funded no matter what.

It is less important if you already hold a large term policy that would easily cover the remaining premiums, or if the remaining premium term is short. Compare the rider’s cost with the cover you would get from a term plan using our LIC term plan calculator. If you want protection against accidents as well, see the LIC Accident Benefit Rider.

How to use this calculator

1. Enter the proposer’s age.
2. Enter the base plan’s yearly premium.
3. Enter the rider term (the remaining premium paying term).
4. Choose the premium mode.
5. Read the rider premium, rider sum assured, the cost as a percentage of your base premium, and the table of premiums that would be waived.

All figures are estimates. The final rider premium is shown in LIC’s proposal and depends on the base plan and underwriting.