All About Riders In Unit Linked Insurance Plans
Updated On Aug 13, 2021
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To make the endowment insurance plan more profitable to investors, riders are added to the plan's fundamental framework. A policy can be enhanced by adding add-ons to cover particular occurrences. Different riders are available depending on the insurer, and they may be discussed and modified during the insurance purchase.
Different riders that you may add to your endowment plan to increase your level of security are discussed in this article.
Riders In Unit Linked Insurance Plans
Following are the riders that can be added under unit-linked plans -
1. Waiver of Premium Benefit Rider
ULIP Premium Waiver Rider If your normal income is disrupted due to an accident or serious illness, a premium waiver rider guarantees that all future premiums are waived and your investment and life protection remain unaffected. If you are unable to earn a living, your loved ones can still achieve their life goals. Detailed in the policy document are the criteria under which this rider can be used to get benefits.
2. Accidental Death Benefit Rider
Accidental death benefits are provided by this rider in addition to the life insurance coverage provided by the ULIP. In this case, the nominee also receives the death benefits of the standard ULIP plan in addition to the rider sum promised. For example, if your basic ULIP includes a Rs 10 lakh life cover, you may get maximum accidental coverage of the same amount with this rider.
3. Accidental Permanent Total/Partial Disability Benefit Rider
Depending on the rider terms and circumstances, this rider pays out a lump sum amount if the life guaranteed suffers from a whole or partial disability as a result of an accident. By adding this rider to your ULIP base policy, you and your family won't have to worry about not being able to fulfil your life objectives due to a lack of funds.
4. Critical Illness Benefit Rider
When you are diagnosed with a serious disease, you will require financial assistance in order to receive the best possible care. You don't want your funds to be depleted as a result of medical bills. Adding a critical illness benefit rider to your ULIP policy lets you receive a lump sum payment if you contract one of the critical diseases covered by the policy, protecting you and your family from the financial consequences of such illnesses. Cancer of various types, a first heart attack of a particular severity, renal failure needing frequent dialysis, organ transplant, severe paralysis, and so on are examples of these disorders.
5. Family Income Benefit Rider
This rider offers financial assistance in the event of the life assured's death, accidental permanent complete incapacity, or initial diagnosis of any of the policy's listed critical diseases. Under this rider, 1% of the rider sum assured is typically paid monthly for a minimum of 10 years. Your family may continue to accomplish their life objectives without worry with a regular monthly income.
Adding a rider to an existing ULIP increases the total value and advantages of the policy. It protects you and your family from a variety of unanticipated catastrophes without requiring you to purchase another insurance policy. You may secure your and your family's life objectives through riding.
Riders serve as a form of protection for future events, as well. Policyholders benefit from them since they are an effective strategy to protect their assets. Due to this, it is necessary to weigh the pros and cons of adding an additional rider.
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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.