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Different Types of Term Insurance Riders

Published On Jul 04, 2021

Term insurance is a true form of insurance that provides benefits to the loved ones or family of the insured person in case of the demise of the policyholder. The term insurance comes with multiple benefits, but many people’s requirements may vary. To cope with such situations, term insurance riders are available which can be opted for by paying a little extra premium. The additional riders strengthen the term plan when chosen for the right requirement and as per your budget as it increases the premium of the plan. To avail them in the best way, you should have a clear and complete understanding of term insurance rider covers.

Types of Term Insurance Riders

Term insurance riders are the attachments for the term plans that supplement the policy coverage. Here are different types of rider covers:

1. Accidental Death Benefit Rider

This term insurance rider provides you with an additional sum assured amount if the insured person or policyholder passes away due to an accident. The policyholders think that they will get the sum assured amount if they die due to an accident and not in any other situation. This is not true. Actually, policyholders are eligible to get the basic sum assured even if they don’t buy this rider cover. This term insurance rider cover is only to help you receive an additional sum assured amount if the insured person dies due to an accident. For example, if you buy a plan of 80 lakh sum assured and include the accidental rider cover of 20 lakh. Then you will be liable to get 80 lakh on demise due to any reason other than accident and 1 crore in case of accidental death.

2. Accidental Disability Benefit Rider

The accidental disability benefit rider is designed to provide financial assistance in case policyholders suffer a temporary or permanent disability due to an accident. In such cases, the maximum number of plans will be paying you regularly for the next 5-10 years with a specific percentage of the sum assured. For instance, the insurer will pay the insurer person with 10% of the sum assured of the policy every year for the next 10 yrs in case of accidental disability due to an accident. The policyholders can consider this amount as their regular income source, which could be a great help to them.

3. Critical Illness Benefit Rider

The policyholders will be entitled to receive a lump sum amount in case they are diagnosed with a pre-specified critical illness in the policy. Generally, all the serious ailments are part of critical illness cover which include heart attack, cancer, stroke, kidney failure, paralysis, and so on. Once the policyholder is detected for a critical illness, the lump sum amount will be paid off by the insurer after which the plan can be terminated or continue as per the policy wording. In some cases, the policy continues with the reduced coverage by the amount paid to you. Hence, you should go through the policy document properly to avail the rider to the fullest.

4. Waiver of Premium Rider

The waiver of premium rider tends to ensure that your plan does not get terminated even if you are unable to pay your future premium due to income loss or disability. In such scenarios, the future premium amount gets waived off but your plan continues to work as usual. This rider cover ensures the payment of all the premiums on behalf of the policyholder till the policy expires. If this rider cover is not available, then the policy will expire on the non-payment of premium and no death benefit will be provided at the time of the policyholder’s death.

5. Income Benefit Rider 

The income benefit rider is a part of different types of policies and it is designed mainly for the generation of income after the death of the insured person. If this rider cover is opted by a policyholder, his or her family or loved ones will be eligible for supplementary income every year for 5-10 years along with the regular sum assured amount. For example, 10% of the sum assured of the policy will be received by the family of the policyholder for the next 10 yrs after his or her demise. 


Before opting for any term insurance rider cover, it is imperative to understand their features and benefits in detail. Hence, we hope that with the above-mentioned details of different types of riders, you will be able to make an informed decision to add them to your plan.

Also Read: 

Types of Life Insurance Policies and Riders

What is Waiver of Premium Rider in Child 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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