How Riders Help You Support Your Life Insurance Policy?
Updated On Nov 19, 2021
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A rider in life insurance is an additional insurance cover which adds coverage to an existing life insurance policy. Riders provide a safety belt to our basic life insurance plans as they ensure added benefits for the insured individual. They are customized to suit the needs of the respective individual. Thus, Riders are really helpful if chosen appropriately as they ensure comprehensive coverage under a basic existing plan.
Rider makes the overall experience for the insured individual a lot smoother due to the value that it adds to an existing policy. Their range of coverage options alongside their added benefits come to present them as a feasible option. From a financial point of view, they are extremely helpful. To find more reasons to purchase a Rider that help support your life insurance, read on.
How Riders Help in Supporting Life Insurance Policies?
Following are the key reasons regarding riders help in supporting insurance policies -
1. Enhanced Coverage
A Rider ensures the benefit of comprehensive coverage on an existing plan. For example, in an event of a medical emergency, extra monetary support can be availed due to the rider’s add-on support on a respective policy.
Must Read: How Can Term Rider Be Beneficial?
2. All-In-One Plans
Another benefit of getting a Rider is that it provides all-round coverage minus a new investment plan. Many companies even provide options of adding numerous riders to one single insurance plan instead of investing in several individual policies. Thus, making it cost effective and ensuring greater coverage on insurance plans for insured individuals.
3. Cover Extension
A rider provides the option of cover extension against unforeseen events like, death, disability, etc. Riders boost the insured amount in an insurance plan as they provide the benefit of additional sum that covers a policy overall. They are an effective option as they keep individuals safe from any form of miscommunication.
4. Tax Exemptions
Riders provide us with numerous tax benefits on insurance plans. For example, the Indian Income Tax Act, Section 80C, 1961 allows an individual the benefit of tax rebates on life insurance plans. Similarly, there are numerous forms of benefits and rebates that riders provide in life insurance plans.
5. Long Term Perks
In a turn of events, if an insured policyholder becomes incapable, disabled, etc., financial assistance is provided due to the rider’s additional coverage on a respective insurance plan. An individual is not compelled to cancel or terminate their insurance coverage. But they do have the option of requesting for a waiver.
6. Special Benefits
Some riders may choose to add child education support along with other perks and benefits to basic insurance plans. These are especially helpful in events like, uncertain demise of a family’s principal provider. In turn, these add-ons help support the families of the insured individuals.
7. Additional Benefits
Addition of riders to insurance policies broadens the range of it’s coverage. An individual can avail numerous benefits under the same insurance policy at a low price. As a result, it increases the value and coverage of your insurance policy in the long term. Thus, in turn, it provides more benefits and monetary support compared to the insured individuals with numerous insurance policies without riders.
8. Nominal Charges
Riders, when chosen wisely, can assist in obtaining much-needed benefits in addition to those provided by an insurance policy. The nominal fee ensures to boost the insurance coverage under respective policies of insured individuals against unforeseen conditions/events.
Small investors who can't afford a lot of insurance policies but want to protect their loved ones for a better and safer future can rely on insurance riders. They're simple to use, flexible, and affordable, and cost effective at the same time. Thus, riders are an important investment that can render people free in terms of leading a happy, free and safe future.
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.