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Term Insurance Riders And Their Benefits

Updated On Jul 24, 2021

Term insurance rider is an amendment or an attachment made to a term insurance policy that gives the policyholder additional coverage, thereby enhancing the benefits of a policy. Riders offer several additional benefits apart from death benefits provided in a term insurance policy.    

There are 6 riders in term insurance. Read further to understand their features and benefits: 

1. Accidental Death Rider

This rider pays additional sum assured to the beneficiary, calculated on the original sum assured of the term insurance policy. The percentage of the additional sum assured may differ from one company to another, and some companies may also offer this benefit with a maximum limit of sum assured. Kindly note that the rider is applicable only in case of an accident. And in the misfortunate event of death of the insured, the sum assured will be given to the beneficiary.

2. Critical Illness Rider

This rider protects the policyholders from major illnesses, such as cancer, heart attack, kidney failure, paralysis, etc. If the cover is not purchased, then you may have to spend a lot on medical expenses for the illnesses. The riders provide you compensation by paying a lump sum amount in case you are diagnosed with any of the listed critical illnesses.   

3. Accelerated Death Benefit Rider

This rider allows your family to get the sum assured in advance, in case you as an insured have been diagnosed with terminal illness. You can use this amount to cover medical expenses incurred due to the treatment. It is an affordable rider that specifies the percentage of sum assured to be paid in advance in case of the insured event. 

4. Accidental Disability Benefit Rider

This rider covers the risk of the insured becoming partially or permanently disabled after an accident. It can be treated as an income source for the individual or their loved ones.

5. Waiver of Premium Rider

This rider comes into use if and when the policyholder is not able to pay premium either due to disability or loss of income. If you have this rider, then your policy will stay active until the future premiums are waived off. In case you don’t have this rider, and you are not able to pay premiums due to any reason, then the beneficiary will not be eligible to receive death benefit. 

6. Income Benefit Rider

This rider helps in income generation even after the demise of the policyholder. If you have this rider, then your family is eligible to get additional income every year, for the next 5-10 years after the insured’s death, apart from sum assured under the policy.    


Most term insurance plans come with different riders, which vary in terms of premiums, features, as well as benefits. Some insurance companies offer riders that can be purchased with term insurance plans as a package deal, whereas other riders are to be bought additionally by the policy buyers by paying an additional premium. The premium paid for riders is usually more affordable than term insurance plans, but their sum assured is also typically lower than the insurance cover. 

So, before selecting a rider under your term insurance plan, you must check its premium, features and benefits and don’t forget to compare it with other riders in order to make the best buying decision for yourself and your loved ones. 

You may also like to read:-

Terms And Conditions In A Term Insurance Plan

Why Should I Buy Term Insurance Online?

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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