Should I Add Riders To My Life Insurance Policy?

Riders can be defined as additional coverage that enhances the base coverage of the policy which can be purchased along with the life insurance policy. Life insurance riders provide financial protection from uncertainties of life such as accidental death, accidental total/permanent disability, diagnosis of critical illness, treatment of critical illness etc. These riders help you ensure financial security of your loved ones during unforeseen circumstances. 

Some common life insurance riders are Accidental Death, Accidental Total and Permanent Disability, Critical Illness, Accelerated Terminal Illness, Waiver of Premium, Term Rider, and Income Benefit Rider. 

Importance Of Adding Riders To Your Life Insurance Policy

There are different life insurance riders available, one can choose a rider according to their coverage requirement and budget. Below mentioned are some reason why you should add rider to your life insurance policy:

• Policy Customisation: If you have a life insurance plan which provides coverage against the risk of unforeseen demise, you should consider adding riders which allow you to customise your life insurance policy according to your requirements. By adding a rider to your life insurance policy, you can get enhanced coverage against a risk which is not covered under your base life insurance policy.

• Makes Life Insurance Economical: Riders make life insurance economical as premiums for riders are significantly lower as compared to the premium paid for a fully functioning life insurance policy. Riders not only eliminates the need of an additional life insurance policy but also provides financial protection from certain situations which are not covered under the functioning life insurance policy at a nominal cost. Riders help you save your money.

• No Requirement of Additional Policy: As mentioned above, riders eliminate the requirement of an additional life insurance policy because you can purchase riders along the policy for additional coverages which are not included in the base policy. A potential buyer can attach a rider to the base policy in exchange of additional premiums without actually purchasing another life insurance policy for financial protection. 

• Extensive Range of Riders: There are several rider options available in the market, the potential buyer can choose from the extensive range of riders according to their requirements and their budget. The potential buyer can choose from the following life insurance riders:

• Accidental Death Rider
• Accidental Total and Permanent Disability Rider
• Accelerated Terminal Illness Rider
• Term Rider
• Critical Illness Rider
• Waiver of Premium Rider
• Income Benefit Rider
• HospiCash Rider
• Surgical Care Rider

To conclude

Riders can be very useful as they are inexpensive as compared to the premiums of an active life insurance policy. By adding riders you can increase the power of the base coverage of your life insurance policy, which will allow you to ensure financial security from certain circumstances which are not included in the base policy. You should add riders to the life insurance policy to make the policy more powerful.

Also read: 

Which is the Best Term Insurance Plan For You – Regular Term Plan or Smart Term Plan?

Term Life Insurance: Myths Vs Reality

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.