Waiver of Premium (WOP) Impact Overview

Policybazaar highlighted the significance of the Waiver of Premium (WOP) feature in life‑insurance policies, noting that since 2018 it has processed 3,550 claims amounting to approximately ₹396 crore in benefits for families across 32 states and union territories and more than 1,000 cities.

Financial Benefit Comparison

The average claim benefit for policies that included WOP was ₹53.3 lakh, compared with ₹9.1 lakh for policies without the waiver, indicating an additional average benefit of ₹44.2 lakh directly attributable to the WOP feature.

Practical Illustration

Policybazaar illustrated a typical scenario: a parent investing ₹10,000 per month for ten years passes away in the second year. Upon death, the WOP triggers a triple‑benefit payout – a ₹12 lakh life cover to the nominee, the insurer assumes future premiums worth ₹10.8 lakh, and the nominee receives an annual income of ₹1.2 lakh for a specified period, while the policy continues to accrue its maturity value.

Claim Demographics and Geography

Analysis of the claims data revealed that 35.2% of policies with paid claims named a child as the nominee and 32.7% named a spouse. The 30‑40 age group represented the largest share of policyholders, followed by the 41‑50 segment. The top five states from which claims originated were Uttar Pradesh, Maharashtra, Haryana, Delhi and Punjab. The predominant cause of death was sudden demise due to severe illness, followed by heart attacks and accidents.

Adoption Trends and Asset Management Scale

The share of Policybazaar customers opting for the Waiver of Premium rose markedly from 3% in 2018 to 33% in 2026, reflecting growing consumer awareness. Policybazaar’s insurance partners collectively manage ₹15,586 crore in assets under management (AUM) for Policybazaar customers, spanning financial goals that extend across years and generations.

Executive Comment

Vivek Jain, Chief Business Officer – Life Insurance at Policybazaar, stated that while parents typically focus on savings amounts, timelines and milestones, they often overlook the contingency of the premium‑paying parent’s death. He emphasized that WOP fills this gap by ensuring insurers cover future premiums, thereby preserving the child’s financial plan.

Disclaimer: This press release is provided under an arrangement with NRDPL. PTI takes no editorial responsibility for the content.