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All About Riders in Retirement Insurance Plans

Retirement is pretty much defined and has to happen, everyone who is a worker must retire one day and typically return to his/her basics. A good mental and financial planning and preparation for your retirement are the important factors for carefree and happy retirement. You may be financially ready to retire, but you may not accept that you will soon be retired and vice versa.

You may find yourself in a very unpleasant predicament once you retire if you choose to disregard it. It is therefore recommended that you begin to prepare for your pension at an early age. One of the fundamental requirements for a successful pension is that we have a decent pension scheme but it is tricky to have so many profitable pension schemes that tend to confuse the buyer.

However sometimes even a retirement plan or a pension scheme might prove to be very less for you as compared to your post retirement priorities, needs and requirements. Retirement plans might not cover that one element which you might very desperately need, in such a case, to have a proper back up and a secured option, you should add riders in your retirement plan to ensure that you don’t run out of funds when you require them the most. 

What Are Riders?

A Rider provides additional coverage, risk protection or supplement to an existing insurance plan. Riders are cost-effective additional items that you can get for your life insurance cover in addition to your present term insurance policy. This is another plan to increase its coverage, which is added to the basic policy.

There are a range of types of riders that range from ordinary treatment to critical disease, accidental death or incapacity, money for education and/or marriage for your child, and so on and riders can be added to most of the traditional forms of investments. 

Most Common Retirement Insurance Insurance Riders

These are some of the riders on Retirement Insurance Plans, which are most usually purchased and make your policy 100 times more effective in circumstances of emergency:

  • Premium Waiver Rider

A Premium Waiver Rider helps you to waive the premium if you, the cardholder, are facing an incident that leaves you or her critically ill, incapacitated or so unwell that the left premiums cannot be paid. In some instances, the premium exemption driver gives you an alternative without payment of premiums to continue with your policy.

  • Return Of Premium Rider

As its name suggests, a Return of Premium Rider refunds the premium amount you paid to date. If you have a living condition that produces such situations, that you require enormous pieces of money at the same time and perhaps a pricey operation, rather than paying money. In this situation, you can use your premium rider's return and redeem the premium you spent up to now.

  • Accidental Death Rider

An Accidental Death Rider may be included as well for the entire lifetime or term policy, which attempts to boost the benefit of your death in the event of a fatal accident causing your death. In this situation, your family is awarded not only the death benefits but twice as much.

  • Family Income Benefit Rider

As the name suggests, your policy nominee should be paid an equal monthly fee if your or the only breadwinner or the retired person happens to die in a misfortunate event. 

  • Accelerated Death Benefit Rider

The accelerated death benefit or the ADB offers you extra protection if you anticipate a short period of life owing to severe disease. These benefits are provided without any extra fees in your policy.


Now that you know adding riders in your retirement insurance plan has so many advantages, including premium waivers, premium waiver return, etc, you should definitely consider adding them to your policy. All these riders assist you in consolidating your retirement corpus and the overall policy.

Also read 

Points to Consider While Planning for Your Retirement

Top 5 Benefits of Buying Retirement Insurance Plans

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.        

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