What Are Life Insurance Riders And Its Benefits
Published On Jun 22, 2021 8:51 PM By InsuranceDekho
Table of Contents
- Types of Life Insurance Riders
- Benefits of Life Insurance Riders
Everybody deserves a protection plan with the broadest inclusion, an arrangement that gets their future in the most ideal manner conceivable. You might be having such a policy which might not be covering your post-retirement needs or may be at such a phase in life where you need to get sufficient assets for your medical services and finances your children's higher studies also and your present extra security probably won't cover both of your necessities.
What might you do in such a case? Invest into another plan? No. Invest into riders and enlarge the inclusion of your policy. A rider is an additional plan added to the base plan which aims to build the inclusion of your protection. Riders are of various sorts and range from typical medical care to basic sickness to untimely demise etc and come with many benefits.
Must Check:- Life Insurance Benefits
Types of Life Insurance Riders
There are many riders available out there who take care of a person's A to Z needs but the 5 most common and popular insurance riders are as follows-
1. Guaranteed Insurability Rider
The Guaranteed Insurability Rider gives you the benefit of purchasing additional insurance coverage in your stipulated period of term plan without having to go through further checks.
2. Accidental Death Rider
This rider is like a double indemnity rider because if the policyholder dies in an accident the family is entitled to double the insured amount along with additional benefits.
3. Family Income Benefit Rider
This rider is common amongst individuals on whom their whole family is dependent or they're the sole bread earner. This rider ensures an assured sum of money to the family for a specific time period.
4. Child Term Rider
The Child Term Rider aims to provide a death benefit in case a child dies before reaching a certain age limit. This can also be made and extended into a permanent plan without having to go through medical checkups.
5. Return of Premium Rider
The Return of Premium Rider is a plan under which you have to pay a marginal amount of premium and upon maturity, you receive it back.
Benefits of Life Insurance Riders
Riders come with numerous benefits when it comes to making the policy profitable and a safe option for the customer. Here are some of the main benefits-
1. Say No To Multiple Policies
You don't have to go through the hassle of getting a new policy just to bridge the gap by selecting appropriate riders. You won't have to overload yourself by managing different stand-alone policies if you have a rider
Must Check:- Life Insurance Plan
2. It Provides Enhanced Coverage
When you add a rider to a term plan, it provides more protection against unavoidable circumstances such as death or disability. Riders aim to safeguard you against all possible mishappenings. Riders also add to the total cover-up sum of your policy and hence increase your insured amount.
You may also like to read:- 3 Unpopular But Useful Life Insurance Riders
3. Helps You Save More In Taxes
Section 80C, Income Tax Act of India allows for the policyholder exemptions in tax due to life insurance premiums. Additional deductions under Section 80D of the Income Tax Act are available if you choose a rider for medical reasons
4. Comes With Premium Waivers
The risk that adds on riders covers in providing financial help if the insured policyholder becomes disabled due to any mishappenings. These circumstances will not force you to cancel your insurance policy due to the lack of funds, you will instead be entitled to a waiver.
What Is A Child Rider In Life Insurance Policy?
Insurance Riders are a boon for small investors who can't throw money into tonnes of insurance and are only investing to save for the better future of their loved ones. Invest into the riders you think you may need in the future and live a haste-free life.
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.