Waiver of Premium adoption grows to 46% in FY27 so far, retirement plans see sharpest rise: Policybazaar

More Indian investors are now protecting their plans against disruption, not just building a corpus. Policybazaar data shows adoption of Waiver of Premium (WOP) rose from 27% in FY2024-25 to 29% in FY2025-26 and 46% in FY2026-27 so far (April-August).

The climb has been steady through the year: 32% in April, 41% in May, 43% in June, 55% in July and 61% in August. The August figure is month-to-date and subject to change.

Retirement plans recorded the sharpest rise. The share carrying WOP grew more than fivefold, from 7% in FY2024-25 to 37% this year. Given the long investment horizons involved, customers are looking to protect not only their own corpus but also the financial security of their spouse and family if their ability to fund the plan is disrupted.

Child-focused plans still see the highest adoption, at around 65%. However, WOP is no longer only a child-goal feature. Around 70% of all WOP policies sold name a nominee other than a child, and among such plans adoption has risen from 22% to 43%.

Younger buyers are driving the trend. Around 70% of WOP customers are aged 28-40. Among customers under 35, adoption rose from 27% in FY2024-25 to 29% in FY2025-26 and 47% this year. For those aged 41-45, it rose from 9% to 13% over three years. Adoption among men increased from 30% to 48%, and among women from 23% to 37%.

Adoption is also strong among customers earning less than ₹15 lakh a year, at around 45%. The ₹5.01-10 lakh bracket accounts for the largest share of WOP buyers, up from 31% to 37%. The ₹3-5 lakh and ₹5-10 lakh brackets record some of the highest attachment rates. Salaried customers make up 69% of WOP buyers.

The trend is not limited to big cities. Tier 2 and Tier 3 cities show slightly higher adoption than Tier 1. The South and Central regions saw the sharpest increases, from 28% to 50% and from 33% to 49% respectively. The South also accounts for the highest number of WOP policies bought.

WOP adoption is concentrated in policies with 15-20 year terms, which points to its relevance for long-duration financial commitments.

The data suggests WOP is part of how customers structure long-term financial plans, rather than an add-on feature. Children remain a strong trigger, but customers are increasingly using it as a broader goal-protection mechanism.

Policybazaar said the growth in retirement-focused plans, greater adoption among younger and middle-income customers, and rising uptake across different nominee profiles point to a broader focus on making sure financial plans deliver on their intended goals.

“The increase in WOP adoption shows that customers are thinking not just about building a corpus, but also about what happens to that financial goal if the policyholder is no longer around,” said Sameep Singh, Head of Investments at Policybazaar. “WOP helps ensure that the premiums required to continue the policy are taken care of, so the goal can remain on track.”

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