How Can You Customize Your Life Insurance Plan With Riders?

Updated On Jul 08, 2021

Life insurance’s main objective is to provide financial protection to your family in your absence. Life’s uncertainties come unannounced and it is impossible to predict what may happen. Life insurance riders are additional coverage that enhance the base coverage of your policy. The riders help in ensuring that you and family are financially protected from the uncertainties of life.

What are Life Insurance Riders?

Life Insurance riders are additional coverages that can be purchased with the life insurance policy at an additional cost. These riders increase the power of base cover of the life insurance policy.

Types of Life Insurance Riders

Below mentioned are the different types of life insurance riders:

Accidental Death Benefit Rider: Under this rider a sum assured along with rider benefit is paid out to the nominee in case the life assured passes away in an accident during the policy tenure.

Accidental Total and Permanent Disability Rider: This offers a lump sum to the life assured in case he/she suffers total permanent disability caused due to an accident. This rider usually comes along the Accidental Death Benefit rider.

Critical Illness Rider: Critical Illness rider offers a rider benefit to the life assured in case he/she is diagnosed with a critical illness rider such as Cancer, tumour, organ failure or heart disease etc.

Waiver Of Premium Rider: Under this rider all the future premiums gets waived off in case the life assured suffers total and permanent disability caused by an accident.

Accelerated Death Benefit Rider: Under this rider a part of sum assured is provided to the life assured in case he/she is diagnosed with a critical illness, which can be used for the treatment of the illness. In case the life assured passes away due to the critical illness during the policy term the remaining sum assured is provided to the family of the life assured.

Term Rider: This rider provides a monthly income or a lump sum to the beneficiary in case the life assured passes away during the policy term.

Surgical Care Rider: Under this rider a lump sum amount is provided to the life assured in case he/she needs to undergo an unavoidable medical surgery during the policy term.

Know How You Can Customize Your Life Insurance Plan With Riders

Below mentioned are some of the facts which will help you to know how you can customize your life insurance plan with riders:

Evaluate the Need of Purchasing a Rider: Before purchasing a life insurance rider it is necessary to evaluate why you require a life insurance and what type of life insurance will fulfill your requirement. Prior to adding a life insurance rider it is also important to know about the different types of riders as every rider has different benefits to offer.

Pick the Right Rider: After evaluating different types of rider and the need of purchasing a rider you must shortlist riders which you think will fulfill your needs. Though riders can be purchased even after the policy issuance, it is still very necessary to add a rider which is upto mark and enhances the base coverage of your life insurance policy.

Avoid Purchasing too Many Riders: Try not to add too many riders to your policy as it may complicate the claim settlement procedure and may also increase the premium. Choose a rider that best suits your requirements and fits your budget as well.

Endnotes

Life insurance riders offer additional coverage but it is very important to choose a rider that will fulfil your requirement and enhance the coverage of life insurance policy within your budget. Life insurance riders help you customize your plan in a way, you can add a rider which offers benefits that are not already included in the life insurance policy.

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.