Riders Meaning In Insurance- Rider Meaning In Life Insurance

Everyone wants the most comprehensive term insurance policy available, one that protects their future in the best way possible. You may be at a point in your life where you need to secure enough cash for both your healthcare and your child's further education, and your existing life insurance may not cover either of your demands. What would you try in such an occurrence? Invest in a different policy? Definitely not. Invest in riders to expand your policy's coverage and get better protection for you and your family, that too at nominal costs. 

What Is A Rider?

A rider is an add on to the coverage of the base term insurance policy. There are many riders which provide coverage for health care, funding for your child’s education and/or marriage and so on. Riders are tailor made add ons and can be customised according to the needs and requirements of the customer and can be added to any type of insurance plan, including term, endowment, money back, and unit-linked. Riders come with many benefits and increase the cover up value of your policy to many times the original value.

They help you enhance the coverage and protection of your original cover plan, making you eligible for heavy rebates on Income Tax. With riders in your policy, you don’t need to invest into different policies which saves you from management hassles as well. Riders provide the best death benefits, some riders even pay double the insured amount which becomes a great support to the family in need. Moreover you can plan the specifications of your policy rider (such as payment duration, duration of rider etc.) according to your budget.

Most Common Life Insurance Insurance Riders

Here are some most commonly bought Life Insurance Riders which will make your policy hundred times more effective in cases of emergency: 

• Premium Waiver Rider

A Premium Waiver Rider is a rider that aids you with waiving off your premium amount in case you, the policyholder, faces a mishap which leaves him or her critically ill, disabled or in such a state that it is not possible to pay the left premiums. In such cases, the premium waiver rider provides you with the option of continuing with your policy without paying the premiums.

• Return Of Premium Rider

A Return Of Premium Rider, as the name suggests returns the premium amount you have paid till date. In case you face a condition in your life which creates such circumstances that instead of paying money, you need huge chunks of money at once, maybe a costly operation etc. In this case you can avail your return of premium rider and get back the premium you have paid till date. 

• Accidental Death Rider

An Accidental Death Rider can be added both to the whole life term or term policy, it aims to increase the death benefit in case you meet an accident which is fatal and causes your death. In this case, not just the death benefits but double the amount is paid to your family. 

• Family Income Benefit Rider

A Family Income Benefit Rider, as the name suggests provides the equal amount of monthly payments to your policy nominee in case of your or the only breadwinner's sudden demise.

• Child Term Rider

A Child Term Rider is taken for the children of the policyholder. It is an add on provision to your policy that provides death benefit cover in case the insured child faces sudden demise before the stipulated age.

• Accelerated Death Benefit Rider

The Accelerated Death Benefit Rider or the ADB is a terminal sickness benefit that is included in your policy without any extra costs and provides you with extra cover if you are expecting a short life due to critical illness. 

Conclusion 

Now that you know that riders provide so many benefits including benefits such as premium waivers, return of premium waiver etc. All these riders help you strengthen your corpus amount and the overall policy. 

Also read 

5 Reasons To Add Riders To Your Insurance Plan

Why Should You Buy Life Insurance Riders?

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.