Life & Term Insurance Policy

Life insurance policies are meant to cover the risk of the early death of the policyholder. In such a case the policy acts as a source of income to the family of the insured. However, apart from this, there are several other uncertain conditions and misfortunes in life risks in life which even a life or term insurance plan may not cover.

  • Disability (both permanent and temporary) due to an accident can impact one’s earning capacity. 
  • Default in premium payments towards the policy can also render the objective of buying the policy. 
  • There can also be hospital-related expenses during the tenure of the policy.

Opting for life insurance or a basic term insurance policy cannot cover the above-mentioned risks. You must be wondering, then how to get cover for such situations? The answer to your question is by adding Riders to your basic Term Insurance Plans.

Let’s understand this in detail.

What are the Term Insurance Riders?

Term insurance riders are the additional coverage which is included in the main term insurance policy. Adding a rider to your policy to enhance the benefits or you can say coverage of your insurance.

Most of the riders are not inbuilt in basic term insurance plan, therefore you need to add this the policy on the top of your plan. Against this, an additional cost is charged which you need to pay along with the premium. There are different types of riders available and one must opt for it based on their requirements. 

Here are some of the riders available to choose with a term insurance policy.

Critical Illness Rider

Critical illnesses include heart attack, paralysis, cancer, coronary artery bypass, kidney failure, etc.  These affect the person physically and in many cases, a person is not able to continue his/her job. Other than that there is a huge expense on the treatment of these diseases. All this cannot be affordable by common people. 

Critical Illness Rider has the potential to rescue you from all such tough situations.

Critical illness diseases are pre-specified in the policy, and in case you suffer from any of these you will receive money for treatment as well as to meet your other financial obligations.

Therefore, it is important to read the policy documents properly to be aware of the critical illnesses which are covered in your plan covered in the plan. It is always better to choose a plan with a rider to cover critical illness.

Accidental Death Rider

Today’s world is fast-moving and unpredictable too. Accidents are common and can happen anywhere to anyone. It can be a road accident or an accident at the construction or it can even be at home. In situations like this, a term insurance plan providing an only death benefit, which means only one will get only assured sum. 

The money you get from the sum insured can be insufficient for the survival family as there expense and liberties can be more. 

Adding accidental Death Rider provides an additional sum insured to your family, in such a situation. People who need to travel frequently should opt for this rider. 

For an accidental death rider, the premium charged is low. This does not affect the premium though.

Income Benefit Rider

Income benefit rider is the one among the most important riders which one should add to their policy. This rider protects your family financially when you are not there to support them financially. Adding an income rider to your policy plan provides an additional sum for your family for the next 5-10 years which is on the top of the assured sum. The policyholder who is the only earning member in the family should go for this rider.

Waiver of Premium Rider

This rider waived off your remaining premiums in case you are unable to pay the remaining premiums due to some physical disability, illness or even in case of job loss.

Normally when you are incapable of the premiums towards your policy, the policy lapses and the policy benefits are also reduced. Having this rider ensures that your policy remains active along with the future premiums waived off. A policyholder should always go for the rider as life is unpredictable and you never know what’s going to happen next.

Accelerated Option Rider

An accelerated option rider is an insurance contract which allows accelerating the benefits or partial benefits sooner than they would have been. Extra charges are imposed when you go for such riders.

Key Features of Term Insurance Policy Riders

  • A rider is your insurance policy adds benefit or you can say provides additional coverage to you.
  • Riders come at an extra cost which is on top of the premiums.
  • Riders come in various forms such as long-term care, term conversion, waiver of premiums, and exclusionary riders.

Term Insurance is a great tool which provides cover to your life. But normally it comes with the basic benefits and adding riders to it increases your cover benefit. One should check their requirements and then add the respective cover to their term insurance depending on their requirements.