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What are the Rider options with a Life Insurance Plan?

Updated On May 05, 2021

Policyholders can customize their insurance plans based on their needs, through specific add-ons, also known as policy riders. The nature and the cost of these riders are based on the nature of the plan and the insurance company. They strengthen the policy by including additional benefits apart from the death benefit. They have to be bought separately by paying an additional premium and it is important to check with the insurance company regarding the riders that one qualifies for.

Top 5 Rider Options Available with Life Insurance Plans

Riders add extra benefits to the policy and should be carefully chosen after assessing their cost and benefits. The rider options for life insurance plans are as follows:

1. Accidental Death Benefit Rider

This rider pays an additional death benefit if the policyholder dies in an accident. This additional benefit is equal to the sum insured of the original policy, and thus offers double the benefit. This rider is also termed as the double indemnity rider, as it doubles the benefits for the nominees.

2. Waiver of Premium Rider

Through this rider, the insured can waive off all future premiums, if they become disabled as a result of illness or injury. The disabled policyholder is exempted from paying premiums until they are ready to resume work. But the clause of total disability and the terms of this rider varies between insurance providers.

3. Family Income Rider

This rider offers the family of the insured a steady flow of income, upon their death. While buying this rider, it is mandatory to state the number of years, the family will receive the benefit.

4. Accelerated Death Benefit Rider

This rider is useful when the insured suffers from a terminal illness. The family members have to spend a huge amount towards the treatment of the critical illness of the insured. But with this rider, the insurer will pay part of the sum assured in advance. The family can manage the treatment costs with this rider. This rider is beneficial for those with a family history of a certain illness.

5. Critical Illness Benefit Rider

The insured will receive a lump sum amount upon the diagnosis of a critical illness, that is mentioned in the policy. Diseases such as cancer, heart attack, paralysis, stroke, kidney failure, etc., will be included in this rider. After paying the amount post-diagnosis, the policy will either terminate or continue, according to the policy terms and conditions. 

Bottom Line

Though these riders are easy to buy and make the life insurance plan flexible, most insurers will not allow the insured to buy riders as per their needs. But policyholders should add riders to customize their policy, after evaluating the fine prints of the rider thoroughly. 

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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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