Top 3 Riders in Term Insurance Plans
Updated On Jul 12, 2021
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A suitable rider option can be the cherry on the cake for your term insurance plan. This will help protect your family from a financial crisis in the face of an unfortunate and unforeseen event. Riders are attachments, revisions, or adjustments to your term insurance policy that enable you to get enough coverage and additional benefits. These riders can be purchased for a reasonable amount to cover situations other than the death of the life assured. However, you must remember that the riders can only be purchased at policy inception. Now, read on to find out about the top 3 rider options in term insurance policy.
Top 3 Riders in Term Insurance Plans
Here are top 3 rider options to make your term insurance plan more robust.
1. Waiver of Premium
According to the rules and regulations, if you don't pay your premiums, your term insurance will be liable to termination. However, if the policyholder dies while the life assured under the policy is still alive or if the policyholder is paralysed or injured for an extended period of time due to a permanent or partial disability, the life insurance provider will have to waive off all future premium payments due under the plan after the date of the accident. Moreover, the life assured would still be able to enjoy the policy benefits.
2. Critical Illness
If you are diagnosed with one of the critical illnesses listed in your term insurance policy document, such as cancer, kidney failure, heart attack, stroke and so on, the insurance provider will have to pay out under this rider. In this case, the company will provide life assured with the sum assured in lump sum. However, it must be noted that this rider advantage, as well as the payment associated with it, expires after that.
3. Accidental Death Benefit
If the life assured dies in an accident during the rider benefit term, the insurance provider will have to pay the rider benefit. In such a circumstance, the accidental death sum assured is payable in addition to the base sum assured. Moreover, as the rider option covers unexpected and accidental deaths, the premiums are modest.
4. Other Rider Benefits
There are some other rider benefits that can be availed to improve your term insurance policy.
- A permanent and partial disability rider benefits offers additional coverage to the life assured if the disability is caused in an accident. A percentage of the sum assured is paid at regular intervals which acts as income replacement for about 5-10 years. Moreover, it would be best if you know about the accident cases which will be covered in your plan and understand all the terms and conditions related to them.
- An accelerated death benefit rider is another good rider option. Under this, the insurance provider will make a partial advance on the sum assured if the life assured is terminally ill. Furthermore, the advance payment can be utilised to pay for treatment and other expenses, if he/she has less than a year to live.
The rider options mentioned above can be considered while purchasing a term insurance plan for yourself. Moreover, it is advisable not to buy unnecessary riders that might increase the policy cost. You can carefully assess your needs, health conditions and future goals and aspirations to make your decision easier.
Also read - All About 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.