Reasons to Add Riders to Your Life Insurance Policy

Updated On Aug 09, 2021

Reasons To Add Riders to Your Life Insurance Policy
Take Away

Financial security and freedom to live life as per your goals go hand in hand. However, income is vulnerable to setbacks, which can occur due to some of the different causes not within our authority. The best way to get shielded against these uncertainties is to get a life insurance plan. However, sometimes standard life insurance does not offer customised coverage. There is where life insurance riders (add-ons) come in handy.

Reasons To Add Riders to Your Life Insurance Policy

Insurance riders add more stars to the safety ranking of a simple life insurance plan. But that's not it, they have more benefits:

1. Enhanced Cover

Adding riders to your life insurance policy would definitely bring more strength and help cover your family. For eg, if your life insurance policy has a guaranteed amount of Rs. 1 crore, you can apply Rs. 25 lakhs extra to a serious illness rider. This is a vital advantage for passengers, since lengthy hospitalization and medical costs in certain circumstances, such as accidental accidents, can precede the demise.So, the family will need a lot of money than just the death claim to take care of it all. The most compelling justification for you to apply riders to your life insurance policy is that you want your families to be protected from more than one danger.

Also Read:- 4 Most Preferred Life Insurance Rider

2. Eliminates the Need for an Additional Policy

Life insurance plans offer coverage for any risks such as permanent disability, partial/total/temporary disability, income loss, sudden death, serious illness, and many more. Nevertheless, you will not find a case where a single policy gives protection from multiple risks. This is where the add-ons are essential. To get extra benefits, you can buy riders or add-ons to your base life insurance plan, without requiring you to buy another life insurance policy to get the same coverage.

3. Tax Benefits

Premiums paid for life insurance riders qualify for tax benefit provision deductions under Section 80D of the Income Tax Act 1961.

4. Minimal Management Hassles

Riders work for the basic life sheet. However, if you were to purchase a different unintended and vital insurance plan, you would not only incur additional premiums, but also have more than one scheme to handle. Another downside to individual purchases is that the joint incentives would not be eligible.

Take Away

Purchasing a rider, along with a life insurance policy, benefits you in a number of areas. Although some riders will help protect your families in the event of a catastrophic event, some riders will help you carry on during unexpected accidents or severe illnesses. It's about filtering sensibly and choosing the rider that meets your needs.