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Increase Your Coverage With Life And Term Insurance Plans

Updated On Jun 30, 2021

It is important to note that riders come at a relatively cheaper cost. It is advisable that you opt for a rider at the inception of the policy. The earlier you take action the cheaper will be a rider for you. Insurance companies do not put restrictions on the number of riders you can opt for. However, it had been specified by the Insurance Regulator that the premium which you on a rider cannot exceed 30% of the premium that you pay for the base policy. 

You may come across insurance covers such as critical illness or personal accident as bitha stand alone policy or a rider. Take a note that a rider will always prove less expensive than a stand alone in policy. If you are on a lookout for a specific protection for a limited duration of time, a rider is a good option. 

Riders That Helps You To Increase Your Coverage

Here's a list of important term riders that helps you increase your coverage: 

1. Accidental Death Rider

This term rider offers you additional sum assured if the insured dies due to an accident. The investors happen to have a myth that they will receive the sum assured if death happens due to an accident otherwise not. If you do not buy this rider, you will still be paid the basic sum assured. This rider is only for the supplementary sum assured in case the policyholder faces a death due to an accident. 

2. Permanent And Partial Disabilities

This rider becomes greatly beneficial if you get permanent disability or temporary illness due to an accident. In such scenarios, most of the policies pay you regularly for next 5 to 10 years in a certain percentage of sum assured. You can therefore rely on this rider for an income source. This rider comes into force only if the disability happens due to an accident. Quite often, this term insurance rider is combined with Accident Death Rider. 

3. Critical Illness Rider

You receive a lump sum amount if you are diagnosed with an illness which is pre-specified and is mentioned in the policy. All the major illnesses are a part of the critical illness rider. After critical illness is detected, the policy might continue or terminate as per the policy document. At times, the policy coverage lessens by the amount paid to you. So understand the policy document to know what exactly will happen in this rider. 

4. Waiver of Premium

This rider ensures that the policy does not entitle you to surrender you to falter in paying your premium due to disability and income loss. In such cases, the future premiums get waived off but your policy is still in force as always. This in a way, is insurance of the premium payment till your policy expires. In case this rider is unavailable and you are disabled and  eventually you are not able to pay the premium, the policy would expire and you will not get any death benefit at the time of your death as due to non-payment of premium the policy expires and the cover stops. 

5. Income Benefit Rider

This rider is a part of some policies and is mainly income generation after the death of the policy holder. If this rider is present, the policy holder's family gets supplementary income per year for 5 to 10 years along with a regular sum assured. 

Take Away

The riders sure seem like a necessity if we consider eventualities like the ones mentioned above. It is true that we cannot prevent such incidents from happening but we can very well plan for them. Term insurance riders are a part of such planning. Their presence will help both you and your family. 

Also Read: Compare Term Insurance Policies In 2021

Different Riders To Opt With Your Term Insurance Plan

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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