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Benefits of Riders in Term Insurance Plans

The term insurance policies are meant to provide financial security to the family and dependants to sail through testing times. In addition, you can even purchase some additional rider benefits to prepare for specific unforeseen situations and cases. These riders are additional adjustments that help provide supplementary coverage to the life assured. They can be purchased at affordable prices during policy inception only. The following article elaborates on different rider options and their benefits. 

Different Riders and Their Benefits

Here are some rider options with their benefits. 

1. Critical Illness

The insurance company must pay out if you are diagnosed with one of the serious conditions stated in your term insurance policy document, such as heart attack, kidney failure, cancer, stroke, and so on. In this instance, the insurer will issue the sum assured to the life assured in a lump sum payment method. Moreover, it is worth remembering that the rider benefit and the payment linked with it, is valid for a limited time only. 

2. Permanent and Partial Disability

According to the plan, if the permanent or the partial disability is caused to the life assured by an accident, an additional coverage will be provided to the life assured. A percentage of the sum assured is paid on a regular basis, providing income replacement for around 5-10 years. Furthermore, it is preferable if you are aware of the types of accidents that will be covered by your policy and are familiar with all of the terms and conditions that apply to them.

3. Waiver of Premium 

Under this plan, the life insurance provider is required to waive all future premium payments due after the date of the accident, if the policyholder passes away while the life assured is still alive, or if the life assured is seriously injured for a long period of time because of a permanent or partial disability. Moreover, the term insurance insurance policy benefits will be enjoyed by the policyholder without getting terminated. 

4. Accidental Death Benefit

The insurance provider must pay the rider benefit if the life assured dies in an accident during the rider benefit term. The accidental death sum promised is payable in addition to the basic sum assured in this case. Furthermore, the rates are low because the rider option covers unexpected and accidental fatalities.

5. Accelerated Death Benefit

Under this, if the life assured is terminally ill, the insurance provider will offer a partial advance on the sum assured. Moreover, if he/she has less than a year to live, the advance payment can also be used to pay for treatment and other expenses. This helps the family handle the financial strain caused due to high medical bills for hospitalization and post-hospitalizations care. 

Benefits of Riders

The rider options provide the benefits mentioned below. 

  • Extra Coverage - The extra coverage provided by the riders of the term insurance policy can build a stronger financial safety net for your loved ones in the face of a financial crisis. 
  • Affordable - The expenses of buying a separate policy for disability or critical illness coverage can be avoided with the appropriate rider benefits. Moreover, you can customize your term insurance plan with the appropriate riders which resonated with your wants and wishes.
  • Tax Benefits - The additional benefits of tax deductions can help make the policy cheaper and under your budget. Moreover, it helps in saving your hard-earned money. 

Conclusion

The benefits mentioned above show the significance of an appropriate rider option. Hence, you must choose the right option for yourself after carefully understanding your future health needs and requirements. 

You may also like to read- Top 3 Riders in Term Insurance Plans

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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