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Benefits Of Enhancing Your Life Insurance With Riders

Published On Mar 26, 2021 12:00 AM By Shrida Gulati

Life insurance riders are additional coverages that can be purchased along the life insurance policy at the time of policy issuance. The riders come in exchange for a little bit of extra premium. There are different riders namely Accidental Death Benefit, Accidental Total and Permanent Disability, Critical Illness Rider, Term Rider, Waiver of Premium Rider, Accelerated Terminal Illness Rider, HospiCash Rider, Income Benefit Rider, and Surgical Care Rider. All of these riders offer different benefits. 

When you add these riders in your life insurance policy, you increase the power of coverage under your policy. Read below to know what are the benefits of enhancing your life insurance policy with riders.

Read More: 4 Most Preferred Life Insurance Rider

Benefits Of Adding Rider To Your Life Insurance With Riders

Following are the benefits of adding rider to your life insurance riders:

1. Policy Customisation

Purchasing a rider with the life insurance policy allows you to customise the plan if you have a life insurance plan that provides only basic coverage against the risk of death. You may get increased coverage against a potential risk that is not covered under the plan because each rider has a different benefit to offer such as Accidental Death Benefit Rider provides a lump sum amount if the life assured passes away in an accident, Critical Illness Benefit Rider offers rider benefit amount if the life assured is diagnosed with a critical illness. 

2. Eliminates the Need for an Additional Policy

There are certain things that a life insurance policy does not offer cover against, such as cover against total/partial temporary disability, permanent disability, accidental death, loss of income, diagnosis of a critical illness etc. Usually it is very hard to find a life insurance policy that offers protection against multiple scenarios. This is where life insurance riders come in handy because they provide extra coverage, you can purchase a rider to your base plan, without having to buy another policy or policies to get the same coverage.

3. Makes Life Insurance Pocket Friendly

Purchasing a life insurance rider eliminates the need to buy an extra life insurance policy, as mentioned in the previous point. This results in not having to pay high premiums for an extra life insurance policy because when you purchase a life insurance rider, you purchase additional coverage which is not included in the base life insurance plan. Premiums paid towards a life insurance rider is comparatively much affordable than an extra functional life insurance plan. Purchasing a life insurance rider saves money.

4. Tax Benefits

Premiums paid towards life insurance riders qualify for tax exemption under Income Tax Act, 1961.

Also Read: How To Choose The Right Life Insurance Riders?


When you purchase a life insurance rider, you not only increase the power of coverage under a life insurance policy but you also save money, you get the opportunity to customise your life insurance policy with the rider. Once you purchase a life insurance rider you eliminate the need of purchasing an extra life insurance policy.

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