What Are The Most Suitable Riders For An Endowment Policy?

Endowment policies are a unique blend of insurance cover and investment opportunity. This type of life insurance policies provide a death benefit in case of an unforeseen demise of the life assured during the policy tenure, maturity benefit in case the life assured survives the entire policy term and also provide wealth appreciation. Other than death benefit and maturity benefit, endowment policy also provides tax exemptions. At the time of policy issuance you add life insurance riders to your endowment policy to enhance and customise the base coverage of your endowment policy, according to your budget and coverage requirements. 

Riders can be purchased for an additional premium at the time of policy issuance. Some common rider options that you can choose from are, Accidental Death Benefit Rider, Accidental Total and Permanent Disability Rider, Critical Illness Benefit Rider, Term Rider, Accelerated Terminal Illness Rider, Waiver of Premium Rider, Family Income Benefit Rider etc. 

Also read - Some Salient Features Of Endowment Plans

What Are The Most Suitable Riders For An Endowment Policy?

Below mentioned are some rider options that you can choose from to add in your endowment policy:

1. Accidental Death Benefit Rider

Under Accidental Death Benefit rider a lump sum amount is provided to the nominee, along with the death benefit, in case of an unforeseen demise of the life assured caused in an accident, during the policy tenure. This is one of the most popular and very frequently opted riders. 

2. Accidental Total and Permanent Disability Rider

Accidental Total and Permanent Disability rider provides a rider sum assured in case the life assured suffers total and permanent disability caused in accident during the policy tenure making the life assured unable to earn a living for themselves. 

3. Critical Illness Benefit Rider

Critical Illness Benefit rider provides financial security to the life assured, in case he/she is diagnosed with a critical illness such as, kidney failure, heart diseases, cancer, etc. This rider helps the life assured fulfil his/her medical expenses without worrying about the funds. 

4. Waiver of Premium Benefit Rider

Waiver of Premium benefit rider waives of all due premiums under the endowment policy, in case of an unforeseen demise of the life assured, total and permanent disability caused in an accident or diagnosis of critical illness. The waiving off premiums depends on the terms and conditions of different insurance providers. 

5. Accelerated Terminal Illness Benefit Rider

Under Accelerated Terminal Illness Benefit rider, the death benefit is provided to the nominee, in case the life assured is diagnosed with a terminal illness and he/she has low survival chances because of the terminal illness. 

Conclusion

Above mentioned riders can help you enhance the power of coverage of your endowment policies. These riders can be purchased at an additional cost at the time of policy issuance. Riders can help you customise your endowment plan according to your insurance coverage and budget. Riders are inexpensive and eliminate the need for another policy. You can choose from the different rider options to enhance the base coverage of the policy. 

You may also like to read - Step By Step Guide For Purchasing The Right Endowment Plan