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How To Select The Perfect Term Insurance Rider?

Updated On Dec 14, 2021

A Term Insurance Rider is an optional benefit that may be added to an individual’s base term protection policy to assist them acquire more than just life insurance. 

The extent of protection required and the amount offered varies on an individual basis. Based on one's income, responsibilities, and significant life events, one must choose the appropriate insurance coverage and optimize the advantages by utilising various riders.

Riders can always be applied to a number of insurance policies at any point during the policy's life span; they are personalized to the insured individual's specific needs. Riders are very cost-effective, and they are frequently preferred over standalone insurance. Riders are responsible for all of an individual's needs, including retirement, education, and health care. To know more about term insurance riders, read on.

Important Term Insurance Riders & Their Benefits

Following are some of the most important term insurance riders -

  • Accidental Death Benefit Rider

If an insured individual dies as a result of an accident during the policy period, this rider pays an additional sum promised. This extra sum is computed as a percentage of the initial sum insured, and the proportion may differ from company to business.

In rare situations, the maximum sum promised on this rider may be fixed. On the other hand, the premium for this rider remains constant during the policy term.

One common misperception about this rider is that the insured individual would only get the sum promised if the death is caused by an accident and not otherwise. This isn't the case at all. Even if this rider is not included, the base sum insured will be paid. In the event of the insured individual’s death as a result of an accident, the rider merely offers an extra payment over and above the base sum covered.

  • Accelerated Death Benefit Rider

When an individual is diagnosed with a terminal disease, the bereaved family is forced to pay a large sum of money for the respective individual’s medical care and related expenses. The family receives a portion of the sum insured in advance if the patient has accepted the expedited death benefit rider. This comes in handy on those crucial days.

This rider sets the amount of the sum promised that must be paid in advance. The Accelerated Death Benefit Rider is a low-cost rider that provides significant benefits.

  • Accidental Disability Benefit Rider

This rider kicks in if the insured individual is involved in an accident and is left partly or permanently incapacitated as a result of it. Most plans that include this rider pay the handicapped insured individual on a regular basis for the next 5 to 10 years after the accident-caused disability, as a percentage of the sum guaranteed.

This rider can be counted on as a source of revenue. It's vital to remember that this rider only applies if the handicap was caused by an accident. The policy paper specifies the terms and conditions in detail.

  • Critical Illness Benefit Rider

The insured receives a lump sum payment if a valid assessment of a critical illness defined in the policy is made. Cancer, heart attack, stroke, paralysis, coronary artery by-pass graft surgery, renal failure, major organ transplant, and other catastrophic diseases are covered under the Critical illness policy.

Following the assessment of a critical illness, the insurance may be continued or terminated according to the terms and circumstances of the policy. The amount paid out to the insured individual might sometimes reduce the insurance coverage.

It is recommended that an individual read the policy document in order to fully comprehend the terms and circumstances of this rider.


Some of these riders may be required in light of the uncertain circumstances. One may not be able to avert unpleasant events, but can certainly plan for them. Term insurance riders are a vital aspect of contingency planning, and an individual and their family would benefit from having them.

Also read: 

How Can Term Rider Be Beneficial?

How Riders Help You Support Your 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.

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