Life is unpredictable. At times, choosing only life insurance coverage seems insufficient. You need an added insurance cover to protect your loved ones from the unexpected financial crisis. That’s where the utility of riders comes in.
Do you wish to boost your existing term plan coverage? You can now avail of extra benefits on your term insurance by opting for riders/add-ons that can be included in your current insurance plan to enhance insurance cover. Read further to know about riders and the extra coverage it offers.
Term Plan Riders
Insurance companies generally offer various add-ons such as accidental death, critical illness, permanent disabilities, etc., on an optional basis. Some riders may be a part of the term plans, while you need to bear extra costs for others.
Some key points to be noted about the riders are as follows:
- These are optional and come into effect only under some specific conditions.
- The cost of these riders is less than the policy premium, and the same is true for the assured sum.
- The term of the rider cannot go beyond the policy term.
Let’s look at some of the common riders available with term plans.
- Critical Illness Benefit Rider: This rider aims to financially assist the insured if any major illness such as cancer, kidney failure, heart problems, etc., occurs. A lump sum amount is paid to the insured as a part of the critical illness rider, which helps to cover the huge cost of medical treatments.
- Guardian Benefit Rider: This rider works only if the life insured and the policyholder are two different individuals. In this, if the policyholder dies during the policy term, all the future premiums are waived off till the term of the policy is reached. The insurance company pays the premiums and keeps the insured life off from the burden of paying regular premiums when the policyholder is no more.
- Accidental Disability Benefit Rider: If the insured becomes partially or permanently disabled due to an accident and is unable to pursue his livelihood, this rider waives off all the future premiums or pays a lump sum amount to help the insured bear the expenses.
- Accelerated Death Benefit Rider: This rider aims to provide financial support to the family and dependents if the insured is suffering from a terminal illness such as cancer, kidney failure, etc. The medical expenses are huge in such cases, and the payment of the assured sum under this rider helps to lessen the family’s burden in times of distress.
Enjoy Enhanced Coverage with Optional Riders
These riders help you customize your policy and add more coverage to it. You must ensure that you know and understand all the terms and conditions specified for the riders you are planning to buy to avoid any confusion in the future.