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Are Riders With Term Insurance Really Required?

Published On Nov 24, 2021

Every earning individual should get term life insurance since it will cover their family's financial needs in the event of their untimely death. However, whether or not an insured individual wants to include riders in their term plan is another matter. There are two schools of thought on whether riders should or should not be included in an insured individual’s term plan. First thought is that riders make term plans more complicated and hence, unfavourable. The second thought is that they broaden the scope of term insurance. As a result, including them in an individual’s term life insurance policy is advantageous.

Those extra benefits or privileges added to a term insurance plan might improve an individual’s life just for a little fee. Therefore, getting a rider on a respective term insurance plan helps an insured individual secure a future for themselves and their respective families for the better. To understand more on the importance of term insurance riders for an individual, read on.

Advantages Of Having Term Insurance Riders

Following are some advantages of having a term insurance riders in an individual possession -

1. Riders Are Favourable

A term plan is a basic life insurance policy. A basic insurance plan covers an insured individual family's financial requirements if they die during the policy's term.

Now, if an insured individual is involved in an accident and becomes permanently crippled, having riders such as accidental disability and premium waiver on disability might be a lifesaver. The insured individual will get the sum promised for the accidental disability rider in this case. They might put the money toward treatment or anything else according to themselves.

Meanwhile, if an insured individual has the waiver of premium on disability rider, then they will no longer be required to pay the insurance premium. However, the policy would continue active until the end of the term, with the same sum insured.

Term life insurance with the correct riders can sometimes be more useful than plain vanilla term life insurance plans.

Must Read: Term Insurance Riders - Meaning & Benefits Explained

2. Riders Are Cost Effective

Accidental death and critical illness insurance are available as individual term plans as well as riders, however riders are less expensive compared to individual term plans.

To further grasp this, consider the case of a critical illness rider.

If an individual buys a Rs 5 lakh critical illness insurance as an individual term plan at the age of 30, the annual premium will be around Rs 8,400. Meanwhile, if an insured individual adds a Rs 5 lakh cover to their term life insurance policy, they'll just have to pay Rs 4,200 a year for the extra coverage.

3. Riders Don’t Require any Extra Documents

An insured individual doesn't have the requirement to sign any additional paperwork when they acquire a rider with a term insurance policy. All they have to do is indicate the riders that they wish to include with their respective term life insurance policy, and their premium will be calculated appropriately.

An insured individual doesn’t need to undergo a second medical examination if they are purchasing riders such as a premium waiver for a critical illness.

4. Some Riders Are Not Available As Individual Plans

Accidental disability rider is not offered as an individual plan. As a result, if an individual wishes to use the respective rider, an individual must purchase them as a rider to their respective term insurance policy.

The waiver of premium riders, on the other hand, are only applicable to an individual’s term life insurance policy. If they don't have a term plan, then an individual doesn't require this type of plan.


Any rider’s premium is determined by the basic sum insured. For example, some riders are inexpensive, while others are expensive. However, when purchasing term life insurance, an individual must seek for riders that can make their coverage more comprehensive at a lower cost.

Also Read: Are Riders Extra Benefits With Life Insurance?

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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