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Why Should You Consider Riders For Your Life Insurance Policy?

Published On Jan 18, 2022 11:10 AM By InsuranceDekho

A rider is a sort of insurance that adds to the original policy's coverage and benefits. Life insurance companies provide a variety of extra riders that you may purchase for a cost to tailor your policy to your specific needs. From child education to accidental disability and all in between, the riders cover it all. Riders are made to order and tailored to the specific requirements of each individual.
They are practical and cost-effective options since they allow you to dramatically increase your plan coverage for a minimal amount. They also give you tax advantages. The way a person views his or her financial situation is quite important. Life insurance riders, as a result, are a very cost-effective investment. To know more on why life insurance riders are a must, read on.

Why Should You Consider Riders For Your Life Insurance Policy?

What Exactly Are Life Insurance Riders?

Riders to a life insurance policy are a new addition or supplement to an existing policy that adds risk protection and coverage. Riders are low-cost add-ons that you may use to expand the life insurance coverage of your existing term insurance policy.
Routine medical treatment, catastrophic disease, accidental death or incapacity, schooling and/or marriage expenses for your child, and so forth are all covered by riders. Terms, endowments, remittances, and unit plans can all be tied to riders.
Riders are frequently less expensive than stand-alone policies, with a high return on investment, in addition to offering additional coverage and protection. You'll be eligible for any tax breaks or refunds if you qualify. All of this emphasises the need of including riders to your life insurance policy.

Why Should A Person Have Life Insurance Riders?

Following are some of the listed reasons for individuals that emphasise on the importance of having term insurance riders -

1. Additional Coverage

The advantage of full coverage is ensured by adding a rider to an existing base plan. For example, adding a Rider to your medical insurance assures that it covers medical bills, home expenses, and other expenses.

2. Adaptability

Another benefit of buying a Rider is its versatility. Individuals have a variety of alternatives to select from depending on their needs. Circumstances, age, gender, and other factors must all be examined individually.

3. Cost Effective

Riders are more cost-effective and efficient than other modes of transportation. By acquiring a Rider, you may be able to get more coverage for your existing insurance plan at a lower rate.

4. Tax Rebates

Furthermore, the rider enables us to save money on our insurance payments. Under Section 80C of the Income Tax Act of 1961, for example, a person may be allowed to deduct the cost of an Accidental Death Rider. Furthermore, under Section 80D of the Internal Revenue Code of 1961, the Critical Illness Rider is tax deductible.

Some Life Insurance Riders Popular Among People

Following are some listed popular term insurance riders that an individual can avail -

1. Accidental Death Benefit Rider

If a person is diagnosed with a life-threatening condition and undergoes treatment, this Rider assures that they will be reimbursed for a percentage of the total cost. This Rider makes it easier for insured people to get treatment by providing financial support.

2. Accidental Disability Benefit Rider

If a person is diagnosed with a life-threatening condition and undergoes treatment, this Rider assures that they will be reimbursed for a percentage of the total cost. This Rider helps insured people who are seeking treatment financially.

3. Premium Rider Waiver

This rider effectively waives future insurance payments if the insured individual becomes financially unable as a result of an emergency, such as being diagnosed with a serious disease, being crippled due to an accident, and so on. The most obvious benefit of this rider is that it keeps the insurance in effect even if the payments aren't paid.


In the long run, a Rider is an excellent way to increase the coverage on an existing life insurance policy. For its enormous scope, specific challenges may be addressed on an individual basis. As a result, a person may choose the Rider choice that best suits their needs.

Also read- Life Insurance Riders You Must Consider

Reasons Why You Should Add Terminal Illness Rider To Your Term Insurance Policy

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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