Most Common Term Insurance Riders and Their Benefits
Updated On Aug 30, 2022
Table of Contents
Term insurance is one of the types of insurance that Indians buy most often. Most of the time, these insurance policies are meant to cover you and your family in the event of something terrible and unexpected. Term insurance is a good choice for people who want to live worry-free lives when it comes to their family.
Your monthly premium for your term life insurance policy may end up being a little bit more expensive if you decide to add a separate rider to it. Depending on what type of rider you choose, the price goes up in different ways. These riders can be added to the main insurance plan even though they have nothing to do with it. The best way to pick from among these options is to first think about your future financial needs and then focus on the one that meets those needs the best.
Most Common Term Insurance Riders and Their Benefits
The most common types of term insurance riders and their benefits are given below:
- Accidental Death Benefit Rider
If the life assured person dies in an accident, one could get an extra amount of money if they add an accidental death benefit rider to their policy. The initial value pledged is used to figure out the initial sum assured, which usually varies from business to business. The cost of this rider is fixed for the length of the policy. Depending on the plan, there may be a limit to how much can be covered.
- Accelerated Death Benefit Rider
A person with a disease that will kill them soon must spend a lot of money on medical bills as a result of treatment. But with accelerated death benefit riders, a part of the insured amount is given to the family right away. This can be very helpful in hard times.
- Critical Illness Benefit Rider
If an assured person is diagnosed with one of the serious diseases listed in the policy document, they may be able to get a lump sum payment. According to the policy's terms and conditions, if a critical illness is found, coverage can either be kept or ended.
- Premium Rider Waiver
As the name suggests, it cancels future payments if the policyholder loses their job or becomes disabled and can't pay them. You might say that by doing this, you can be sure to pay the premiums until the policy ends. If the insured does not have a waiver of If the premium rider is disabled or otherwise unable to pay the premium, the policy will end and there will be no death benefit because the premiums have not been paid.
A term insurance plan gives you more coverage with riders. Here are the different kinds of term insurance riders:
- Enhanced Assured Sum: Some riders for term insurance can also improve the overall coverage.
- Family Protection: One of the most important things about term insurance riders is that they give the insured's family the financial security they need in case something bad happens.
- Efficient: Riders for term insurance offer great benefits for a low price. It's better to buy add-ons like accident and critical illness insurance than to buy separate policies, which would be more costly. The policyholder will also have to handle many policies at the same time.
- One Plan: A Term Insurance Policy may offer a high sum assured that could be given by a Term Insurance Policy. A rider would be better than a whole new insurance policy since the base term insurance wouldn't be enough for our family. Even more than keeping track of several term insurance policies, it would be easier to deal with riders that come with a term insurance plan.
Conclusion
Before adding riders to any of the term insurance plans, you should carefully look over all of the features and limits of the linked benefits. Compare your needs to these requirements, and only after a thorough look should you make a decision.
Also read: How to Get the Maximum Benefits from Riders?
