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How Can a Rider Make Your Term Insurance Plan More Efficient?

The purpose of term insurance policies is to provide financial security to the family and dependents to help them get through difficult times. As a cherry on the cake, you can also add some extra rider benefits to your policy to prepare for specific unanticipated events and emergencies. These riders are optional additions to the policy that assists in giving additional coverage for the life assured. Read on to know more about different riders and their efficiency in enhancing your term insurance policy.

Benefits Offered By Life Insurance Riders

Here is the list of some rider benefits that can be considered while purchasing your term insurance policy.

  • Critical Illness Cover

Suppose you are diagnosed with one of the severe ailments listed in your term insurance policy document, such as stroke, cancer, heart attack and kidney failure etc. In that case, the insurance company is obligated to pay. In this case, the insurer will pay the life assured lump sum amount of the sum assured. Moreover, it would be best to remember that the rider benefit and the money associated with it are only applicable for a short period.

  • Waiver of Premium 

If the policyholder dies while the life assured is still alive, or if the life assured is seriously injured for an extended period of time due to a permanent or partial disability, the life insurance provider is required under this plan to waive all future premium payments due after the date of the accident. Furthermore, the policyholder enjoys the benefits of the term insurance policy without the policy being terminated.

  • Accidental Death Benefit

If the life assured dies in an accident during the rider benefit term, the insurance company is required to pay the rider benefit. In this situation, the additional accidental death amount is payable along with the base sum assured. It should be noted that as the rider option covers unforeseen and unintentional fatalities, the rates are low.

  • Accelerated Death Benefit

The insurance provider will offer a partial advance on the sum assured if the life assured is terminally sick. In addition, if he/she has less than a year to live, the advance payment could be utilized to cover medication and other costs. This relieves the financial strain placed on the family because of expensive medical expenditures for hospitalization and post-hospitalization care.

How Can a Rider Make Your Term Insurance Plan More Efficient?

The additional coverage offered by the riders on a term insurance policy can help your loved ones establish a firmer financial cushion in the event of financial hardship. Moreover, with the right rider features, you can avoid the costs of obtaining separate insurance for disability or critical illness coverage. Furthermore, you can personalize your term insurance plan by adding riders that correspond to your needs and desires.


The true benefits of rider options can be only enjoyed if you choose them judiciously. It is important to remember that purchasing riders lead to increased policy cost. Hence, it would be best if you chose the necessary options to enhance the efficiency of your term insurance policy. You can even consult a financial advisor or an insurance agent to help decide the most appropriate riders for you.

You may also like to read:

Common Terms And Conditions Under Life Insurance

Reasons You Need To Purchase Life Insurance

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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