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Why Ignoring Term Insurance Riders Is A Big Mistake?

Published On Dec 13, 2021 11:00 AM By InsuranceDekho

One size does not fit all when it comes to life insurance. A Term Insurance Rider is an optional benefit that may be added to an individual’s base term protection policy to assist them acquire more than just life insurance. The need for life cover and its amount differs from person to person. Based on one's income, responsibilities, and significant life events, one must choose the appropriate insurance coverage and optimize the advantages by utilising various riders.

Riders can always be applied to a number of insurance policies at any point during the policy's life span; they are personalized to the insured individual's specific needs. Riders are very cost-effective, and they are frequently preferred over standalone insurance. Riders are responsible for all of an individual's needs, including retirement, education, and health care. To know more about term insurance riders, read on.

Importance Of Having Term Insurance Riders

Following are some of the reasons that are important for having term insurance riders -

  • Riders Are Favourable

A basic life insurance policy is a term plan. A basic insurance plan pays for the financial needs of an insured individual's family if the respective individual passes away during the policy's term.

Now, if an insured person is involved in an accident and becomes permanently disabled, having riders like accidental disability and premium waiver on disability might save their life. In this situation, the insured individual will get the amount granted under the accidental disability rider. They may decide to use the funds for therapy or something else entirely.

In the meanwhile, if an insured individual has a waiver of premium on disability rider, they will not be obliged to pay the insurance premium. However, the insurance would remain in effect until the end of the term, with the same sum guaranteed.

Term life insurance with the right riders can be more valuable in some cases rather than plain basic term life insurance.

  • Riders Are Cost Effective

A Rider provides full coverage without the need to buy a new plan. As a result, an individual can acquire benefits without the need to invest in a new policy. Riders are more cost efficient and economical. By acquiring a Rider, an insured individual can get more coverage for their existing insurance plan at a lower rate.

Individual term plans and riders are both available for accidental death and critical illness insurance, however riders are less expensive than individual term policies.

  • Riders Don’t Require any Extra Documents

When purchasing a rider with a term insurance policy, an insured individual is not needed to sign any extra papers. All customers have to do is choose the riders they want to include with their term life insurance policy, and their premium will be computed accordingly.

When acquiring riders as a premium waiver for a serious illness, an insured individual does not need to undergo a second medical examination.

  • Some Riders Are Not Available As Individual Plans

Individual plans do not include an accidental disability rider. As a result, if an individual wants to use the rider, they must add it to their term insurance policy as a rider.

On the other hand, waiver of premium riders are only applicable to a term life insurance policy for an individual. Individuals do not require this sort of plan if they do not have a term plan.


Some of these riders may be required in light of the unforeseen scenarios. One may not be able to avert unpleasant events, but can certainly plan for them. Term insurance riders are a vital aspect of contingency planning, and an individual and their family would benefit from having them.

Also read: How Can Waiver Of Premium Rider Be Beneficial?

Top Life Insurance Riders You Must Consider

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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