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Waiver of Premium Adoption Soars to 46% in FY27, Retirement Plans Lead Growth
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CNBC TV18•21-09-2026, 14:56
Waiver of Premium Adoption Soars to 46% in FY27, Retirement Plans Lead Growth
- •Waiver of Premium (WOP) adoption has surged from 27% in FY25 to 46% in FY27 (April-August), indicating a growing trend among Indian investors to protect financial plans.
- •Retirement plans show the sharpest rise in WOP adoption, increasing more than fivefold from 7% in FY25 to 37% this year, driven by the need to secure long-term investments and family financial security.
- •While child-focused plans still have the highest WOP adoption at 65%, the feature is increasingly used for broader goal protection, with 70% of WOP policies naming a non-child nominee.
- •Younger buyers (28-40 years old) and middle-income customers (earning less than ₹15 lakh annually) are key drivers of this trend, with significant adoption rates in these demographics.
- •WOP adoption is strong across Tier 2 and Tier 3 cities, with the South and Central regions showing the sharpest increases, highlighting a widespread understanding of its importance for long-duration financial commitments.
Key Questions Answered
According to Policybazaar data, the adoption of Waiver of Premium (WOP) has risen to 46% so far in FY2026-27 (April-August), showing a steady climb from 27% in FY2024-25 and 29% in FY2025-26.
Retirement plans recorded the sharpest increase, with the share carrying Waiver of Premium growing more than fivefold from 7% in FY2024-25 to 37% in FY2026-27.
Younger buyers aged 28 to 40 drive the trend, accounting for around 70% of all Waiver of Premium customers.
