In Summary, A Guide To Term Insurance Riders

A traditional life insurance plan entitles the policy holder's nominee (s) to receive the main plan benefit i.e. the sum assured in the event of the policy holder's demise during the plan term. In addition, in the event of the policy holder's survival, there are accrued maturity benefits that are payable to the policy holder. However, this is where a traditional term insurance plan differs from a traditional life insurance plan. A term insurance plan does not include any maturity benefits. However, a traditional term insurance plan entitles the policy holder's nominee (s) to receive the main plan benefit i.e. the sum assured in the event of the policy holder's demise during the plan term.
A term insurance plan offers several additional riders in addition to the main plan benefits. 

Types Of Term Insurance Riders

These riders come with a proportionally increased premium and are of the following types:

1. Accelerated death benefit rider

This is an additional feature that comes as an extra rider and entitles a policy holder or her/his nominee(s) to receive additional benefits (apart from the main plan benefits) in the event of the policy holder's demise due to any specified and pre-defined reason

2. Accidental Death benefit

This is a rider that comes with a clause of lump-sum payment of the sum assured to the nominee(s) in the event of the policy holder's demise due to an accidental reason.

3. Accidental disability rider

This is a very important rider that comes with the clause of financial protection coverage in the event of any kind of disability due premium terms and therefore, must be chosen as per the actual requirement  and not randomly.

4. Critical illness rider

This is an additional clause that offers extra coverage in lieu of the added premium terms and accompanying payment options. This clause offers complete financial coverage against the probability of any critical illness. This clause offers coverage against critical illnesses that are defined and listed in the policy documents.

5. Income rider

This is the rider that entitles the policy holder's nominee(s) to receive a particular sum as a fixed income in the event of the policy holder's demise during the plan term.

6. Waiver of premium

This is a very beneficial rider that is often added to certain plans, especially a child plan. This rider states that there will be no payable premiums in the event of the policy holder's demise and that her/his nominee(s) will be entitled to the main plan benefits.

Conclusion

By choosing riders, you can increase the effectiveness of a term insurance policy. You can add riders to the insurance policy by paying a little extra premium. As you assess the various kinds of risks to your life, you should include corresponding riders as well, so that you can enjoy the comprehensive coverage.

Also read- Here Are Some Frequently Asked Questions About Life Insurance Riders.

What Is The Best Way To Pick The Right Term Insurance Rider?