Some Helpful insurance Riders That You Must Consider
Published On Feb 11, 2022 12:00 PM By InsuranceDekho
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A life insurance policy is an excellent way to assist an individual safeguard the financial security for themselves and their loved ones in the event of an unforeseen event. Riders are one method to tailor your life insurance policy to meet your specific coverage needs. Life insurance riders are optional coverage that may be added to a policy to assist a person tailor their coverage and increase the policy's base coverage. These add-ons are provided in return for a higher payment and provide greater coverage. Riders on life insurance may be quite useful in giving financial assistance in times of need.
Life insurance riders come in a variety of shapes and sizes. For the covered individual, a rider streamlines the entire experience. In terms of money, they are really beneficial. Every rider serves a distinct role and offers a different level of protection. To find out more on how riders are helpful, read on.
Why Should You Use Life Insurance Riders?
Riders are a new addition or upgrade to an existing life insurance policy that provides additional risk protection and rewards. They are low-cost add-ons that you may use to boost the life insurance coverage of your existing term insurance policy. Routine medical treatment, severe illness, unforeseen death or incapacity, your child's education and/or marriage expenses, and so on are all covered by riders. Tenure, endowment, remittance, and unit plans can all be linked using riders. Riders are typically less costly than stand-alone plans, and they offer a solid financial return while also adding coverage and protection. This emphasises the need of adding riders to your life insurance policy.
What Are Some Helpful Insurance Riders?
Following are some of the helpful insurance riders -
1. CRITICAL ILLNESS RIDER - If the life guaranteed is branded with a life-threatening sickness, a critical illness rider might be quite valuable. Tumours, cancer, organ failure, heart problems, and other diseases can be extremely costly to treat. When a life assurance is confirmed with such a critical illness during the policy term, a critical illness rider offers financial assistance in the form of a lump sum payment. This rider can assist a person with meeting medical expenditures that may emerge as a result of being diagnosed with a serious illness.
2. WAIVER OF PREMIUM RIDER - The waiver of the premium rider ensures the continuation of the insurance in the event of an unanticipated event. The waiver of premium rider waives all future payable premiums if the life assured is disabled as a result of an accident, preventing the life assured from earning and paying premiums on time. This rider assists the life assured in receiving assistance under the life insurance policy while also maintaining the policy in force by eliminating future premiums payable if the life assured is disabled as a result of an accident.
3. ACCELERATED DEATH BENEFIT RIDER - If the life guaranteed is diagnosed with a terminal illness during the policy term, the accelerated death benefit rider pays out a portion of the sum assured, which can be used to cover treatment costs for the documented terminal disease. If the life insured dies unexpectedly during the policy term owing to a diagnosed terminal disease, the remaining sum insured will be paid to the life insured's family.
4. INCOME BENEFIT RIDER - The Income Benefit rider provides a predetermined number of monthly payments equivalent to the life assured's monthly income to the life assured's family in the event of the untimely death of the insured life during the policy term.
5. HOSPITAL CASH RIDER - In the event that the life assured has to be hospitalised for treatment, a predetermined sum from the rider sum insured will be delivered to the life assured, which will be dependent on the day-to-day expenditures of the hospitalisation.
The above-mentioned life insurance riders might come in handy in the event of an unanticipated incident or a financial emergency.
Also read - Should I Add More Than 1 Rider To My Life Insurance Policy?
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.