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Term Insurance Riders - Why A Must For Every Policyholder?

Updated On Jan 11, 2022

A rider is a type of insurance that provides extra coverage and benefits to the original policy. Life insurance companies provide a number of optional riders that you may acquire for a fee to match your needs. The riders cover everything from child education to accidental disability and everything in between. Riders are manufactured to order and adapted to the needs of each individual.

They are practical and cost-effective alternatives since they allow you to significantly extend plan coverage for a small fee. They also entitle you to tax benefits. The way a person perceives his or her financial condition is critical. As a result, life insurance riders are a very cost-effective investment. To find out more on why term insurance riders are a must, read on.

What Are Life Insurance Riders?

Life insurance riders are a fresh addition or supplement to an existing policy that provides additional risk protection and coverage. Riders are low-cost add-ons that you may apply to your existing term insurance policy to increase the life insurance coverage. This is an add-on policy that extends the coverage of the base insurance.

Riders cover a wide variety of costs, such as routine medical care, catastrophic illness, accidental death or disability, schooling and/or marriage expenditures for your child, and so on. Riders can be linked to terms, endowments, remittances, and unit plans.

Riders are often less expensive than stand-alone policies, with a strong return on investment, in addition to providing extended life coverage and additional protection. If you have any tax cuts or refunds, you'll be eligible for them. All of this emphasises the need of adding life insurance riders to your policy.

Importance Of Having Term Insurance Riders

Following are some of the reasons that emphasise on the importance of having term insurance riders -

  • Additional Coverage

Adding a rider to an existing base plan ensures the advantage of comprehensive coverage. Adding a Rider to your medical insurance, for example, ensures that it covers medical costs, home expenses, and other costs.

  • Adaptability

Another advantage of purchasing a Rider is their adaptability. Individuals have a wide range of options to choose from, based on their needs. Individually, circumstances, age, gender, and other considerations must all be considered.

  • Cost Effective

Riders are more cost-effective and efficient. You may receive greater coverage for your existing insurance plan at a cheaper cost by purchasing a Rider.

  • Tax Rebates

In addition, the rider allows us to save money on the insurance premiums we pay. A person may be able to deduct the cost of an Accidental Death Rider, for example, under Section 80C of the Income Tax Act of 1961. Furthermore, under Section 80D of the Internal Revenue Code of 1961, the cost of the Critical Illness Rider is tax deductible.

Some Popular Term Insurance Riders

Following are some listed popular term insurance riders that an individual can avail -

  • Accidental Death Benefit Rider

This Rider ensures that if a person is diagnosed with a life-threatening illness and receives treatment, they will be compensated for a portion of the entire cost. This Rider assists insured persons in receiving treatment by offering financial assistance.

  • Accidental Disability Benefit Rider

This Rider ensures that if a person is diagnosed with a life-threatening illness and receives treatment, they will be reimbursed for a portion of the entire cost. This Rider provides financial assistance to insured persons seeking treatment.

  • Premium Rider Waiver

If the insured individual becomes financially incapable as a consequence of an emergency, such as being diagnosed with a significant illness, becoming handicapped accidently, and so on, this rider essentially waives future insurance payments. The most obvious advantage of this rider is that the insurance remains in effect even if the premiums are no longer paid.


A Rider is a fantastic option to boost the coverage on an existing life insurance policy in the long run. Specific concerns may be treated on an individual basis due to its vast breadth. As a consequence, a person may select the Rider option that is most appropriate for them.

Do read - Facts You Did Not Know About 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.

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