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Benefits Of Riders In Unit Linked Insurance

Published On Aug 30, 2021 12:30 PM By InsuranceDekho

Life insurance riders are optional benefits that are added to a primary policy in the event of a certain occurrence. They provide financial protection in addition to the life insurance policy's basic sum assured.

The life cover remains intact despite the occurrence of the catastrophe. This means that even if you've taken out a specific rider, you're still eligible for the life insurance plan's death benefit. Riders can be applied to any insurance plan, including term plans, endowment plans, unit-linked plans (ULIPs), and money-back plans. Additions should be determined based on the policyholder's and family's individual and family needs, as they can improve life insurance and protect the family's financial well-being more thoroughly.

Advantages Of Riders In ULIP

Following are the key advantages of riders in a ULIP:

  • Better Protection

The most significant reason to add riders to your life insurance policy is that you want to protect your family from multiple risks. Without a doubt, death is the ultimate cause of a family's financial problems. Accidental disability and life-threatening illnesses with costly treatments, on the other hand, can be just as upsetting, if not more so. Adding riders to your life insurance policy gives it more bite and better protects your family.

  • Enhanced Cover

Adding riders increases your total protection pool. For example, if your base life insurance policy has a total assured benefit of Rs. 1 crore, a critical illness rider can add Rs. 25 lakhs to it.

This is a significant advantage for riders, as in many circumstances, such as accidental deaths, prolonged hospitalization, and medical bills may occur before the final death. As a result, your family will want far more funds than the death benefit to cover all of their expenses.

Must read: Basic Things To Know About ULIP Before Purchasing It    

  • Premium Waiver

If you develop a serious disease or become disabled due to an accident, the life insurance riders that cover these risks will provide financial support. However, your income will decrease as a result, and you will be reliant on your insurance money for treatment and family expenses.

Should this imply that you'll be dropping your life insurance coverage? Not in the least! You can choose the premium waiver advantage to keep your life insurance from expiring. As a result, if you file a claim for critical sickness or incapacity, your life insurance may continue without you having to pay any more premiums.

  • Minimal Management Hassles

If you get a separate accidental and critical insurance policy, you will not only pay additional premiums, but you will also have to maintain multiple policies. Another disadvantage of purchasing different policies is that you will not be able to combine advantages.

You are unlikely to receive the premium waiver advantage if you do not add the accidental or critical rider to your term plan. It's because these claims serve as a catalyst for premium waivers. If your policy does not already have these advantages, you will not be able to add the premium waiver benefit.


A term insurance rider is an addition, amendment, or endorsement to a term insurance policy that provides additional coverage to the insured. Aside from the main offering of a death benefit, riders augment a term insurance policy by providing several additional benefits. 

Also read: How Are ULIPs Different From Endowment Plans?    

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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