Life Insurance Riders: It is necessary for everyone to take a life insurance policy. With a life insurance policy, you can reduce the risk to your dependents even after death. That is, even if you are not there, they will not have to depend on anyone else. But just think, what if you are in such a condition in an accident that you are not able to do the job? In this case, the benefit of life insurance policy is also not available. Here comes the benefits of life insurance riders, with the help of which funds have been arranged to deal with your such situation. There are several types of riders sold with term insurance.
First understand what a rider is
A life insurance policy is meant to benefit the family on your death, but you can also benefit from the rider yourself. Various types of riders are provided with the term plan, including Accidental Death Benefit Rider, Disability Rider, Waiver of Premium Rider, Income Benefit on Accidental Disability, etc. The more riders you take with your policy, the more your premium increases. You too contact your policy provider today and choose the right rider for you by taking information about the riders.
Can only riders buy?
Ride means to ride a bike or cycle. That is, it is clear from the name that the rider will work only on a policy. That is, if you want to take a rider, then a life insurance policy will also have to be taken for that. If the policy is not there, the rider cannot be taken separately. Yes, it is definitely possible that what one insurance company is offering as a rider, another insurance company sells it as a separate product.
What is the benefit of rider?
A life insurance policy without a rider benefits only your family, that too after your death. On the other hand, if you take a rider, you will get the benefit of any untoward incident. For example, if you have taken a disability rider, then in case of disability due to an accident, the rest of your premium will be waived and you will continue to get all the benefits. On the other hand, in the Income Benefit Rider, you continue to get some money for a few years even in case of stoppage of income due to disability.
Have to pay extra money to buy rider
You have to pay an additional cost to buy the riders and the cost of riders varies across insurance companies. It also depends on other factors like age, health and type of policy. Below are some of the riders that can be purchased based on their benefits along with the primary life insurance policy of the individual.
Accidental Death Benefit (ADB) Rider
This rider provides benefits in case of accidental death of the insured. A lump sum amount is paid to the nominee of the insured i.e. the additional amount mentioned at the time of availing the rider in addition to the normal sum assured. These riders prove beneficial in accidental death due to external, unknown causes. These riders are of great importance in India, as the number of accident deaths in the country continues to rise.
critical illness rider
No life insurance policy provides cover during any health emergency. But an additional rider in the form of a critical illness rider can be purchased and linked to the primary life insurance policy. In case of listed critical illness like cancer, kidney failure, liver transplant or any other major organ transplant, heart failure, stroke, this rider provides a lump sum amount for medical treatment to the individual. Hence, this rider can reduce the financial burden on the individual.
Permanent Disability Rider
This rider provides regular income to the insured in case of any permanent disability. This rider is mainly for such people who have become permanently disabled due to accident or are not able to earn a living. Hence, this rider provides survival benefits to the insured as per the terms and conditions of the policy.
Hospital Cash Benefit Rider
Hospital Cash Benefit Rider provides you cash facility in case of sudden hospitalization. However, this requires a hospital stay of 24 hours or more. With this cash, the insured can pay the hospital expenses and the economic impact on him is reduced.
term conversion rider
Through this rider, the insured can convert his fixed term term life insurance policy into a permanent life insurance policy. Individuals can convert term insurance into a whole life or universal life policy. The most important aspect of this rider is that no additional medical check-up or examination is required to get the policy changed.
Keep these things in mind before buying a rider
Before availing a rider, one must consider various factors such as one’s age, disease history in the family and the type of policy. It is important to consider the cost associated with these riders, as insurance companies charge a hefty amount for the rider. Not only this, these riders also provide exemption under the Income Tax Act.