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Life Insurance Riders - Explained


Life insurance plans take care of various needs at numerous stages of your life. With a higher standard of living and increased income, it becomes necessary to maintain the most fitting insurance protection for you and your family. There is always a need for extra security that will help you in the near future. Life insurance riders are known to provide several kinds of insurance protection if you meet their requirements. Let’s look at the definition, types and benefits of riders to understand the insurance spectrum in detail.

What are the Riders?

Riders are additional benefits or add-ons which you can opt for along with your basic life insurance plans and that too at affordable rates. Riders are those essential tools that enable to expand your life insurance coverage.

Different types of riders:

  1. Waiver of premium: It makes sure that your life insurance policy is active even if you are not able to pay your premiums. The outcome of this policy would be waiving off all future instalments but the continuation of the policy benefits.

  2. Critical illness: In this rider, you pay an extra amount to get yourself an extra coverage if you are diagnosed with critical illnesses mentioned in the policy. The amount received under the critical illness rider can be used to pay for both medical and household expenses, which acts as an income replacement. Though the critical ailments covered under the policy may differ from one insurance provider to another, some ailments like cancer, heart attack, brain tumour, etc.; are covered under the rider.

  3. Accidental death rider: All life insurance plans cover accidental death. However, when you get an accidental death rider, the insurer pays double the sum assured to your nominee in case of your accidental death.

  4. Permanent and partial disability: This insurance is helpful if you become temporarily or permanently disabled due to an unfortunate incident. In most cases, the insurance provider pays a specific sum assured for the next five or ten years. Also, all future premiums of the primary insurance policy are waived off by the insurer.

  5. Income benefit rider: It provides regular income to the family in case of sudden death or disability of the policyholder.

Benefits of riders:

  1. Extra Coverage: By attaching a rider to your primary policy, you get a comprehensive plan.

  2. Getting a rider is much more economical than buying a separate insurance plan. Furthermore, there are numerous types of riders which one can choose as per their requirements.

  3. Flexibility: Any insurance policy – term, ULIP, endowment, life insurance can be attached to the rider. You can even customize your policy according to your needs.

  4. Tax benefits: Like the primary policies, riders can also enjoy tax benefits.

Riders are the best way to get extra coverage at affordable costs. With numerous options for riders and the facility to customize them, it becomes a boon. Do thorough research and opt for a rider that will benefit you in the long run.

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