What Is The Need To Purchase Accidental Total And Permanent Disability Rider?

What are riders? Riders are optional, supplementary terms that are priced separately and apply to an insured individual's base insurance. In basic terms, a rider is an addition to an existing insurance policy that provides additional coverage and risk protection. Insurance riders are low-cost add-ons that may be purchased in addition to an individual's life insurance policy. They bolster and widen one's insurance policy to cover more than just the cost of dying.

Therefore, Accidental Total and Permanent Disability rider can be quite valuable for an insured individual which they can add to their existing term insurance policy. Accidental Total and Permanent Disability Rider is the finest approach to improve coverage and give financial protection to the respective individual and their family in the event of an unforeseen event. To find out more on accidental total and permanent disability rider, read on.

Importance Of Accidental Total And Permanent Disability Rider

• Financial Protection

The Accidental Total and Permanent Disability rider offers financial protection to an insured individual and their family in the event of an accident that results in total or permanent disability. In the event that the respective individual suffers total and permanent disability as a result of an accident, the rider sum assured might assist the life assured in receiving immediate treatment for their handicap. If the life assured is unable to support themselves or their family, this rider can give financial assistance to assist the respective individual and their family members in maintaining a respectable standard of living.

• Payouts

Under this rider, the respective insured individual has the choice of receiving a lump payment or periodical instalments as a payout. In the event that the respective insured individual experiences a total and permanent disability that renders them unable to earn a living, the rider benefit will be paid either in a lump amount or in regular instalments.

• Tax Rebates

The respective insured individual can benefit from tax rebates under section 80C and 10(10D) of the Income Tax Act of 1961 if they purchase a term insurance policy. If the premium for a term insurance policy plus rider does not exceed 10% of the base sum insured, the respective individual can get up to Rs. 1.5 lakh for the premiums. The tax rebates under Section 80D of the Income Tax Act of 1961 will be doubled if they purchase an accidental complete and permanent disability rider.

• Supplementary Income

Under this rider, the benefit amount can be used as monthly income or a regular source of income for the respective insured individual's family and for the respective individual as well if the respective insured individual opts for regular instalment payout. The respective insured individual will get a substantial sum to cover their daily expenditures and assist their family in maintaining a reasonable standard of living. This rider can provide income to the respective insured individual in the event where they are unable to work due to a disability caused by an unforeseeable accident during the policy's term.

• Cost Effective

The accidental total and permanent disability rider gives an insured individual coverage at a low cost. And the premiums for this rider are very low as well. Any individual has the option of acquiring comprehensive coverage at a low cost for themselves as well for their respective families.

Endnotes

Life in today’s time is very unpredictable for any individual. Therefore, adding riders to an insured individual's standard term insurance policy protects their family against financial hardships caused by unforeseen circumstances. Individuals should always choose riders depending on their specific needs in order to provide their loved ones with more security and help them achieve their life objectives.

Also read: 

What Is The Significance Of Riders In Life Insurance Policy?

Purchase and cancellation of life insurance riders explained 

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.