Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Claim, renew, manage & moreLogin

Understanding The Significance Of Riders In Endowment Policies

Published On Sep 15, 2021

Individuals need financial security, and life insurance is one of the most crucial tools that can help them achieve it. Anyone who financially supports a family member (dependent) immediately qualifies for a life insurance policy, the primary objective of which is to safeguard your loved ones financially in the event of your untimely death.

When it comes to life insurance, it is something that differs based on the demands of the individual. Different people have different financial situations and needs, which influences their life insurance needs. Riders are essentially coverage enhancements that can be added to a life insurance policy's base coverage to broaden its coverage. Add-on riders can be purchased at the time of purchase or at any time throughout the policy's renewal. These riders are charged premiums in addition to the standard plan payment.

Riders In Endowment Policies

Below are types of riders in endowment policies:

  • Term Benefit Rider

In addition to the Minimum Death Benefit, the Term Benefit Rider provides further protection. In the event of death, it enables policyholders to increase their sum assured. This gives the policyholder an additional sense of security.

Policyholders can choose from a variety of premium options and take advantage of any available personal tax benefits.

  • Rider For Accidental Death Benefits

If the policyholder opts for this extra rider, the assurer will pay the recipient an accidental death payment in addition to the Death Benefit.

It should be emphasized, however, that regardless of whether this rider is excluded, the necessary full protection will be paid. In the event that the policyholder dies as a result of an accident, the rider merely guarantees an additional sum in addition to the basic sum.

  • Accidental Total And Permanent Disability Benefit Rider

If the Life Assured is completely and permanently disabled as a result of an accident, the Total and Permanent Disablement Benefit is paid. These payments are provided once a claim for a life assured being incapacitated as a result of an accident is approved. After six months from the date of the incident, the conditions are considered permanent.

  • Rider For Critical Illness Benefits

This optional Serious Conditions Rider can help give financial relief in the event of a critical illness. It may pay you a portion of the basic sum assured due to the admission of a claim for a serious illness in specific situations. The amount of the sum assured varies from one assurer to the next.

The Company, on the other hand, will not be obliged to pay a claim if it is the result of the Life Assured's sane or crazy intentional self-injury or attempted suicide. This benefit will only be offered if a Consultant Physician confirms the condition.

  • Rider For Life Guardian Benefits

If the proposer's death is demonstrated to the knowledge of the Company without wrongdoing, the company will make future premium payments on the insurance in respect of all other benefits, subject to the following conditions:

  • At the time of the Proposer's death, this payment is still in effect.
  • The Proposer's age, as stated in the Proposal form, has been verified to the Company's satisfaction.
  • Within one year of the Proposer's death, the Company has received acceptable proof of the Proposer's death, as well as any further criteria set by the Company.
  • Waiver Of Premium

A feature called Waiver of Premium can be added to an endowment plan to ensure that the policy functions smoothly in the case of a calamity. By waiving any future premiums, this provision assures that the insurance continues unabated in the event of the policyholder's death.

  • Hospital Cash Benefit

The Hospital Cash Benefit provides you a daily stipend as well as post-hospitalization benefits if the policyholder is hospitalized at the hospital.

The amount of the payment is determined at the time of the approach and will not alter. This benefit coverage can be purchased alone or as a supplement to your existing endowment insurance policy.


Riders provide a buffer for forthcoming occurrences. They are a wonderful method for ensuring the safety of policyholders. As a result, you should think about whether adding an additional rider to your policy is worth it.

Also read: 

Endowment Plan - Features and Benefits

Endowment Insurance V/S Whole 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.      

Popularly Opted Term Insurance Sum Assured

People Also Read

Must BuyMust Buy

Why to Buy Life Insurance Policy Online from InsuranceDekho

  • Tax benefit upto 1,50,000*
  • Claim support everyday 10AM-7PM
  • 50 Lacs+ happy customers
Find the right life insurance for you
By clicking, I agree to *terms & conditions  and privacy policy.
Find the right life insurance for you
By clicking, I agree to *terms & conditions  and privacy policy.