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Top 3 Reasons To Add Riders To Your Insurance Plan

Published On Dec 07, 2021 3:00 PM By InsuranceDekho

Every individual wants the most comprehensive term insurance policy imaginable, one that protects their future in the best way possible. An individual may be at a point in their life when they need to secure enough finances for both their healthcare and their child's further education, and their existing life insurance may not be sufficient to meet either of these demands.

Thus, investing in riders to help expand any individual’s policy's coverage. A rider is an addition to the standard term insurance policy's coverage. Riders include health care coverage, critical illness coverage, accidental death coverage, disability coverage, and assistance for your child's education and/or marriage, among other things. To know more about riders, read on.

Reasons To Add Riders To Insurance Plans

Following are some reasons add riders to term insurance plans -

  • All-In-One Option

Multiple policies are difficult to manage and will increase the cost of the premium as well as the headaches of several dues and regulations. An individual doesn't have to go through the effort of buying a new policy simply to fill up the gaps with proper riders. If an individual has a rider, they won't have to select between multiple stand-alone insurance.

  • Enhanced Protection And Coverage

The main reason for adding a rider to an individual’s term insurance policy is to protect their family's future. A term plan's death benefit is reasonable, but it will be useless if an individual is rendered disabled in an accident that leaves them unable to financially support their respective family. When riders are added to a term plan, the protection against accidents, disability, and job loss is considerably increased. Furthermore, it improves the entire coverage of an individual’s plan, therefore increasing the overall benefits, including the insurance's maturity benefits. Riders defend an individual against any possible risks an individual may encounter in the future, providing them with increased protection and coverage.

  • Tax Rebates

Sections 80C and 80D of the Income Tax Act of India make an individual’s plan more comprehensive and savings-friendly. For example, if an individual chooses a medical rider then, they may be eligible for a Rs. 25000 tax break. Similarly, different riders provide different and better tax benefits, all of which help an individual save more money in the end.

What Is The Benefit Of Having A Rider?

Riders are important as they eliminate the need to acquire a separate plan for unanticipated events, in addition to improving the coverage of an individual’s term insurance policy. An individual may opt to add some riders to their base plan for an additional premium, but this is less expensive and less of a nuisance than purchasing a separate policy.

Furthermore, a freestanding health insurance policy will necessitate a separate medical examination, which is not required when an individual adds a health or critical illness insurance rider to their plan. If an individual has a pre-existing condition or ailment at the time they purchase their term plan, be sure to tell the insurance provider about the same.

It's also easier to manage an individual’s term life insurance plan since they have a single policy that may cover them against a variety of unanticipated incidents, such as an accident, death, disability, severe illness, and hospitalisation.

The multiple riders given by life insurance firms are supposed to provide substantial coverage to individuals and their respective families in case of crises, according to the Insurance Regulatory and Development Authority of India (IRDAI).


Adding applicable riders to your term insurance policy may be quite useful if done at the correct moment. As a result, an individual should make sure to grasp the riders' entry age as well as other crucial aspects about adding riders to their respective term life insurance policy.

Also read: Are Riders With Term Insurance Really Required?

Are Riders Extra Benefits With Life Insurance?

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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