Should I Add More Than 1 Rider To My Life Insurance Plan?
Updated On Mar 24, 2022
Table of Contents
We seek a source of income primarily for financial security and freedom. Salaries, on the other hand, are prone to failures, which might occur for a variety of reasons beyond our control. We accumulate wealth and, while we are doing it, invest in life insurance plans to safeguard ourselves from such threats. In the case of a severe financial misfortune, such as premature death, life insurance plans act as a safety net. A family's finances can be severely harmed by the loss of a wage earner. It can assist people in regaining their social and financial status, and life insurance can give the financial security they need to stay afloat.
Why Should You Add One More Rider To Your Insurance Policy?
Insurance riders improve your regular term life insurance plan's safety rating by one or more stars. Following are the reasons:
The main reason people add riders to their life insurance policies is to safeguard their families against a variety of hazards. Without a question, death is the biggest cause of a family's financial difficulties. Accidental disability and life-threatening illnesses that necessitate costly operations, on the other hand, can be equally upsetting. Riders to your life insurance policy give it more strength and better protection for your family.
Increasing the number of riders increases your total protection stream. If your underlying life insurance policy has a whole guaranteed value of Rs. 1 crore, a critical illness rider, for example, can enhance your total assured benefit from Rs. 1 crore to Rs. 25 lakhs. This is a huge benefit for riders because various situations, such as accidental deaths, protracted hospitalization, and medical bills, might occur before the final death. As a result, your family will want substantially more money than the death benefit to cover all of their expenses.
A child support rider with an additional reward sum is available on some term insurance products. This means that, in addition to the family's basic sum assured, your insurance will cover your child's schooling and other expenses.
The life insurance riders that cover these risks will provide financial assistance if you contact a serious sickness or become incapacitated as a result of an accident. Your earnings, on the other hand, may decrease as a result, and you may be forced to rely on your insurance for therapy and family expenses. Should your life insurance coverage be canceled as a result of this? Certainly not! You can choose the premium waiver option to keep your life insurance from expiring. As a result, if you file a critical illness or disability claim, your life insurance policy may continue without you having to pay any further premiums.
Management Hassles are kept to a Bare Minimum
Riders are used in conjunction with regular life insurance. You will not only pay more premiums if you buy a separate accidental and critical insurance policy, but you will also have to manage multiple policies. You are unlikely to receive the premium waiver advantage if you do not add the accidental or critical rider to your term plan. You would not be able to add the premium waiver benefit to your insurance if it does not already include these benefits.
You should be extremely cautious when it comes to an insurance plan's maturity or expiration date. Riders may or may not influence your overall life insurance eligibility, so make sure they are worth it before you add them.
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.