Why Term LIfe Insurance Riders Are Important?
Updated On Nov 20, 2023
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Term insurance is a type of life insurance plan that provides you with life cover for a specific period of time. In case of a misfortunate event of the policyholder’s death during this period, the nominee will receive the sum assured. These plans offer a huge sum assured at a reasonable premium, which makes it an inexpensive alternative to other types of life insurance.
But choosing a term life insurance policy is only the start. These plans come with several riders, which you can include by paying an extra premium so that you are able to make the most of your plan.
5 Reasons to Add Riders in Life Insurance Plan
Apart from adding coverage in life term insurance, there are several other reasons as well as why term life insurance riders are important. Read the details here.
1. Eliminates the need for different policies
In case you are not satisfied with the coverage offered under your term life insurance policy, then you can choose a suitable rider to bridge the gap. There is no need to buy a different insurance policy for the same.
2. Saves Cost
Riders in term insurance can be purchased at affordable premiums. It is therefore a wise choice to include riders in your insurance plans rather than to buy another insurance policy, which would be a costly affair.
3. Added Support to Family
No doubt in the fact that to add riders to your term life insurance policy, you will be required to pay a higher premium today. But it will surely offer enhanced coverage to your family in your absence, which is when they would need financial support the most. So, especially if you are the breadwinner of the family, then you should opt for riders for higher coverage.
4. Tax Benefits
The premiums paid for life-term insurance plans are eligible for tax deductions under Section 80D of the Income Tax Act. On adding riders, you can avail further tax benefits. If you choose a medical rider, then you can avail of tax benefits of Rs. 25,000.
5. Minimal Management Hassles:
The primary benefit of having a rider is the ease of management. The rider is a feature that can help in modifying the policy or adding some additional features with complete ease.
There are several term life insurance policies that offer more than simple life cover to your family. To enhance coverage among these plans, you can include riders in them. Different riders available in the market are accidental death benefit riders, accidental total permanent disability riders, child support riders, etc.
When choosing these, you must know their benefits and the premium payment and payout options. By choosing riders, you can make your term life insurance policy quite a package.
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.