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Benefits of Riders in a Child Insurance Plan

Updated On Jul 12, 2021

Basic Insurance gives you only Protection against a specific situation that may arise in the Future, which may affect the lives of you and your Family Members. For example, the Child Insurance Policy creates a corpus for the future so that in case any financial need arises such as the expense of your Child’s Higher Education, Marriage Expenses, etc, however they provide the Benefits under certain conditions. Adding a rider will allow you to provide a Cover against any uncertainty that will become a roadblock in your family’s or Child’s prosperous Future. 

Benefits of Insurance Riders in Child Plans

Though it may seem that it is an additional expense, it is always better to get an Additional Rider rather than purchasing a completely New Policy specifically for each uncertainty that may arise. 

  • Enhanced Coverage

The Additional Riders which are purchased on top of the Insurance Policy enhance the Cover. This means any type of Policy that has been purchased that is offering benefits to secure your future from a specific scenario can be converted to a comprehensive plan which will provide Benefits in case of multiple situations that may cause any kind of financial stress.

  • Flexibility

The Riders are flexible and can be purchased with any type of policy such as Term, Endowment, ULIP, Or Life Insurance Plan. The Flexibility of these plans makes them special. These Riders themselves cover the insured person from special case scenarios such as Accidental Death, Critical Illness, or Disability. And the best part is multiple Riders can be added to the existing Policy.

  • Tax Benefits

Just like any other Policy Riders also provide Tax breaks as per the Taxation Regulations which will add on to your Savings. The Premium Paid under an Insurance Plan, up to an amount of 1.5 lakh, is Tax-Deductible under Section 80C of the Income Tax Act 1961. However, The Policy Benefits received during the plan's duration and upon completion of the Policy period are exempt from Taxation, according to the regulations of Section 10(10D) of the Act.

  • Affordable

Purchasing a Rider saves you from purchasing separate Policy Cover for all the uncertainties in life. This makes Riders far more affordable. If you purchase separate Policies for various scenarios then you have to pay a much Higher Premium for each one of them. As the Premium of each Policy varies and depends on the type of cover. But if you purchase Riders for your existing policy the expenses and the premium are very less and affordable as compared to the latter.

Conclusion

Riders are a Protective Shield or you can say they are layers of protection against many uncertainties. The various types of Riders that are available in the market for purchase are affordable and are not heavy on the pocket as well. 

Whether its some Critical Illness that may cause the sudden demise of the insured, a fatal accident that either leads to the death or total disability of the insured, or any other reason which stops the flow of income in the family and causes financial distress in the family can be covered with the addition of the Riders to the existing plan. 

It is advised that once you purchase an Insurance Plan you should also check with your insurance advisor for the availability of Riders. Now with this said you will have an idea of how you can create a safe and secure future for your children.

Also read 

How To Check Details of Your Child Insurance Plan?

Top 3 Riders Of The Child Insurance Policy

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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