Should You Buy Add-on Covers With Term Insurance?
Published On Jul 22, 2021, Updated On Jul 23, 2021
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Before buying a term insurance you should understand the concept of rider, the term of the rider, the age of entry, sum assured and other factors that affect the policy. Some companies and plans allow riders only at the time of purchasing the insurance plans and new rider additions are not allowed during the renewal of the policy. You may not be able to add all the riders while buying the policy online.
Riders offer additional benefits to insurance policyholders. When you include a rider, they will be applied to the occurrence of the event and you will get financial assistance higher than the basic sum assured offered by the insurance policy.
You can consider some of the riders listed below to increase the effectiveness of the insurance policy.
Term Insurance Riders For Your Term Insurance Policy
This is a list of riders that you can add to your insurance policy for some extra benefits:
Guaranteed Insurability Option Rider
Your requirements from your insurance will change with your age, lifestyle and external factors. The rider will ensure that your insurability will continue with the insurance company. The insurance company should not reject your application for plan renewal or offer a better insurance coverage.
You may also like to read:- What Shall be the Suitable Policy Term of Your Term Insurance?
Term Assurance Rider
You can increase the risk cover to your basic term insurance policy with the subscription of a 'term assurance rider'. It is very easy to add this rider to your term insurance plan. By paying a nominal increase in premium, you can avail a higher sum assured. The insurance company offers monthly payouts or lump sum payout.
Critical Illness Rider
You should include the critical illness rider of your family has a history of critical illnesses. Critical illnesses are not included in term policies. Hence, you should opt for the critical illness rider. So that you can avail a lump sum amount towards the critical illness treatment. If the policy holder dies, due to a critical illness, the sum assured will be paid to the nominee.
Accidental Death Benefit Rider
Incase of the accidental death of the policyholder, it might result in great financial stress on the dependent family members. Therefore, a clause for accidental deaths is included in the insurance policy with the subscription of the accidental death benefit rider. This allows children and spouses to overcome the financial stress as it delivers an additional sum along with the basic sum assured offered by the insurance company.
Income Benefit on Accident Disability Rider
The income benefit rider should be included by the policyholders who are the only earning member in the family. The dependent family will have access to a fixed sum of money for a few years with the inclusion of the rider. The family will be provided with funds managed by the insurance policy and a smooth transition will be ensured.
Also Read:- What Are Term Insurance Tax Benefits?
As it is not possible to predict the future hence you should go for the most appropriate insurance policy to address your specific needs. It is advisable to include riders as they come at an extra low cost and you can gain enormous difference in payouts in addition to the sum assured.
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.