Do You Need a Rider With Your Term Insurance?
Updated On Aug 21, 2021
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Term insurance holds significant importance in many people’s lives. After all, it is one of the best solutions to their financial instability and the worry of their families going through financial stress when they are no longer alive. In most cases, people also prefer adding a rider to their term insurance policy as per their requirements. If you too have been thinking about the same, read along to discover prime reasons for adding a rider to your term plan.
Why Do You Need a Rider for Your Term Insurance?
Key reasons to buy a rider for your term insurance plan:
Beneficial in the Time of Need
A term plan is a pure protection plan. This protection plan helps the policyholder in ensuring that their family will remain financially stable even after their death. What’s beneficial is that if the policyholder meets with an accident and unfortunately suffers from being permanently disabled, in this case having riders like accidental disability as well as a waiver of premium on disability by their side will prove to be a massive support. In this case, the policyholder will get a sum assured for the accidental disability rider. Note that this amount could also be used for any purpose, other than treatment. Moreover, the waiver of premium on disability riders will free the policyholder from paying policy premiums anymore. It is important to note that the policy would remain active till the end of the term. Also, the sum assured would remain the same.
Certain Riders Are Cheaper Than Stand-alone Policies
Insurance policies for accidental death and critical illness are available as stand-alone policies. They are available in the form of riders as well. However, it must be noted that riders come at a cheaper rate.
No Medical Checkup Needed for Rider
One does not have to sign any kind of extra documents for buying a rider along with their term insurance plan. All one has to do is declare what all riders they want to add to their term insurance plan. It is important to note that based on the same, the premium is calculated.
Keep in mind that if a policyholder purchases riders such as critical illness or waiver of premium for a critical illness, they are not required to go through a separate medical check-up.
Certain Riders Not Available as Stand-alone Policies
There are certain riders that do not come as standalone policies. For instance, the accidental disability rider does not come as a standalone policy. If one wants to avail of its benefits, then they have to add it to their term insurance plan. Talking about the waiver of premium rider, note that it comes exclusively to the term life insurance policy. If you do not have a term insurance policy, there is no need for a plan like this.
Keep in mind that you will have to pay an additional premium to add a rider to your term insurance policy and avail of its benefits.
At last, it is advised to read all the policy wordings carefully to avoid any inconvenience later.
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.