Different Types Of Term Insurance Riders?
Published On Nov 24, 2021 12:00 PM By InsuranceDekho
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What exactly is a rider? A rider is a type of insurance that provides extra coverage and benefits to an existing policy. Life insurance companies provide a number of optional riders that may be purchased for an additional but fair cost to fulfil an individual's needs. They are powerful instruments for extending the life insurance policy's coverage.
Riders are available in most term insurance plans. But their conditions, and their charges, on the other hand, vary according to the term plan, the premium, and the firm. While certain riders are provided as part of the term insurance plan, others must be acquired separately and added to the policy after paying an additional charge. An individual should check with their respective insurance agent/advisor about the riders to understand about the riders that their policy qualifies for. To understand and find out more about the different types of riders, read on.
Different Types Of Term Insurance Riders
Following are the different types of riders that an individual can choose from -
1. Accidental Death Benefit Rider
Individuals can obtain the advantage of coverage with this rider by paying a single, limited, or regular premium. In the case of an unexpected or uncertain accident or incident, an individual's beneficiaries may be eligible for additional benefits as a consequence of this rider. The maximum sum covered under the accidental death benefit rider may be subject to an upper limit that varies per insurer.
Must Read: Term Insurance Riders - Meaning & Benefits Explained
2. Critical Illness Rider
When an individual adds a critical illness rider to their ordinary insurance, the policy pays a lump sum if they are diagnosed with one of the policy's insured ailments. This rider covers critical illnesses such as heart attack, renal failure, cancer, coronary artery bypass, major organ transplant, paralysis, stroke, and other catastrophic illnesses. After a diagnosis of the covered illness, the insurance may continue or terminate, depending on the terms and circumstances. Some insurers may give lower coverage after reducing the amount provided to you as a lump sum upon diagnosis.
3. Permanent Disability Rider
If an individual is permanently disabled as a consequence of an accident or unforeseeable events, this rider comes into play at that time. When an individual adds a permanent disability rider to their basic plan, the insurer may pay them a specified amount on a regular basis for a defined period of time. The accidental death benefit rider can be combined to this coverage. This rider assures that if an individual is unable to work due to an accident or incident, they will have a source of income.
4. Income Benefit Rider
This rider is recommended as a safety belt if an individual is the primary earner in their respective household. If a disaster strikes within the policy's term, an individual's beneficiaries will get additional income every year for a certain period of time. This is in addition to an individual's basic insurance plan's normal benefits.
5. Guaranteed Insurability Rider
This rider allows a person to get additional insurance coverage for a set period of time without having to go through another medical examination. When an individual's living circumstances change dramatically, such as with the birth of a child, marriage, or a raise in their pay, a guaranteed insurability rider can help. If a person's health deteriorates as they age, they will be able to obtain more coverage without having to show proof of insurability. This type of rider may also allow a person to renew their base policy without having to go through a medical exam at the end of the policy's term.
An individual can include a number of riders in their insurance policy. Before determining which ones must be included, it is usually a good idea to familiarise oneself with the many benefits, inclusions, and exclusions of the same. Individuals should also think about the additional cost of adding these riders to their policy. To make the greatest selection, an individual needs to spend time studying and analysing the many options accessible.
Also Read: Are Riders With Term Insurance Really Required?
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.