Important Term Insurance Riders

A term insurance rider is the additional insurance coverage that can be added to the basic term insurance plan in order to get enhanced coverage. While there are certain life insurance riders that may come in-built with the term insurance policy, the rest needs to be specifically included in the plan. An extra cost is involved for including these riders in the base insurance plan.

Important Term Insurance Riders

There are several insurance riders available and the policyholder is required to opt for the most appropriate one depending on their needs and lifestyle. Some of the major life insurance riders that are available are as follows:

• Critical Illness Rider

Some of the major diseases such as cancer, heart attack, coronary artery bypass, kidney failure, paralysis etc not only affect an individual mentally and physically but also financially. The huge medical expenses related with the treatment of these illnesses may drill a hole in the pocket of many. During such situations,  a critical illness rider may come forward as a savior. An insurance plan may continue or get terminated on the diagnosis of any critical illness listed in the policy document based on the terms and conditions mentioned in the plan.

• Permanent and Partial Disability Rider

In case of any unforeseen accident, it is possible that an individual may lose their leg, arm or even eyesight and because of this, you may be unable to continue with your work. This in turn could cause a huge toll on the financial safety of the whole family. A disability rider comes as a savior in such conditions. It offers financial coverage to the whole family by paying you an advantage if an individual suffers from total or partial disability.

• Income Benefit Rider

In case you are the sole earning member in your family, then it is a significant insurance rider for you. If you want to provide safety to your family members financially even in your absence, then you must definitely consider buying this insurance rider. This insurance rider assures that your family member receives an additional amount for the next 5-10 years alongside the sum assured.

• Waiver of Premium Rider

In case one is unable to pay future premiums because of any income loss or disability, with this insurance rider, the remaining payable premium gets waived off. While, in general, in case you are unable to pay premiums, the insurance plan lapses. However, by purchasing this in case the policyholder suffers from any kind of disability, the future premiums would get waived off.

At the End

It is clearly evident that a term insurance plan gets upgraded by including a rider. It helps us in planning the future of our family effectively, even in our absence. There are various life insurance riders offered to a policyholder by the insurance companies, some of which are mentioned above. Based upon the income source and lifestyle, one should opt for insurance riders to be included in their base insurance plan.

Also read: Life Insurance Riders Frequently Asked Questions

How To Know Which Rider is Suitable For Myself?

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.