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Benefits Of Riders In Endowment Insurance

Updated On Jul 07, 2021

Riders allow endowment plans to be customized to address the issues of the policyholder. While certain riders are provided as part of the endowment insurance plan, others must be acquired separately and added to the policy after paying an additional price. It is important to check with your insurance agent/advisor about the riders your policy qualifies for when buying an endowment policy.

Benefits of riders in endowment insurance

Here are the certain benefits an investor can avail by adding riders to the endowment insurance plan

  • Additional Customized Protection

Riders are additional benefits offered to provide protection under specific events along with the regular coverage of the policy. Different riders offered by companies cater to the needs of the investors and help them prepare for unfortunate future events.

Certain riders included endowment plans are accidental death benefit, permanent disability benefits.

  • Tax Benefits

Like the payouts under endowment plan, the benefits paid under riders are exempted from taxes. This will ensure that the policyholder received the entire benefit in the times of need.

  • Affordability

Among other benefits, having an add-on rider eliminates the need to obtain a second life insurance policy. As a result, it will save you the cost of paying additional payments for a separate life insurance policy. When compared to the premiums payable for a fully functional life insurance plan, the premiums for an add-on rider are much lower.

Therefore, adding a rider is far less expensive than purchasing a separate insurance policy, making it a more affordable and manageable option for the investors.

  • Multiple Benefits In a Single Policy

With suitable riders attached to your endowment plan, you can avail protection against many risks including permanent disability, total/partial temporary disability, loss of income, accidental death, critical sickness, and many others. 

  • Protection In Case of Income Loss

Riders are extremely important to prepare for further contingency. Riders such as the premium waiver rider provide the policyholder support in case of income loss.In the absence of this rider, if the policyholder faces disability or suffers an income loss, the policy would lapse and no death benefit will be paid due to non-payment of due premiums.

Take Away

Riders can be accessed by investors for different needs; however, mentioned above are a few benefits that will help you make decisions about adding riders to your endowment plan, making it more effective and manageable.

Also read 

Which are the Best Endowment Insurance Plans In India in 2021?

Where Can My Family Raise An Endowment Insurance Claim?

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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