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The All-In-One Guide for Term Insurance Riders

Janhavi Shinde Janhavi Shinde 03 February 2017

Confused about which rider to buy with your term insurance policy? Here’s a list of top 5 most popular ones to get you started. Know all about what they benefit you with and the important things to keep in mind.

One guide for term insurance riders

Buying a term insurance policy online might be tricky, right? Simply because, there are way too many complex options to choose from. It’s difficult to gather what will fit your requirement best.

While you choose the policy that is easy on your pocket, you often tend to neglect the term insurance riders offered along with the basic coverage.

But not anymore! You need to make some smart and awesome choices to get better coverage.

After all, why compromise with your loved ones’ future, when you can easily get term plan riders by paying a little extra?

Curious to know how? This guide to term insurance riders says it all!

Term insurance riders can give you enough backing!

Whenever you go shopping, one sentiment echoes through the mind – “Whatever you shop, should be the best of all!”

It's natural to think so, because these sentiments are directly proportional to the money you spend.

The higher you spend, the more concerned you are to settle on the best product. Same goes with term life insurance too.

Some may ask, “Isn’t buying term insurance riders a waste of money?”


If it fits into your requirement, then it only acts as a savior!

Remember – Term insurance riders can enhance your coverage only if opted wisely.

A term insurance rider is an add-on to your term insurance policy that provides extra coverage by paying a little extra from your pocket. A plain term insurance policy may not be sufficient in these times, because of the number of diseases around.

5 Most Essential Riders to Customize Your Term Plan

Riders will ensure you maximum protection and help you get enough backing at times when you require. They come at an added premium and below are a few that you might want to add to your regular plan.

1. Critical Illness Rider

With this rider, you will receive lump-sum amount on a valid diagnosis of a critical illness (Only if specified in the policy). This rider will definitely help you cover unexpected medical costs and other medical expenses.

Major illnesses like paralysis, stroke, heart-attack, coronary artery by-pass surgery, organ transplant, kidney failure etc. are termed as critical illnesses.

Once you are detected with any critical illness, the policy may continue or terminate as per the policy terms and conditions. This rider is also enhanced from your death benefit.

Don’t be shocked to see the policy coverage also getting shrunk post detection of the critical illness. Which is why it is utmost important to read the policy terms and conditions linked to the rider.

Note: Buying a critical illness rider would be anytime cheaper than buying a standalone critical illness policy.

2. Accidental Death Rider

An additional sum assured is paid to the nominee or the beneficiary of the term insurance policy, if the insured suffers a death due to an accident. The percentage of the additional sum would be calculated on the original sum assured amount.

Remember, this may vary from one insurance company to another. Some insurers also keep a cap on the maximum sum assured on the rider. The premium however remains unchanged for the entire policy period.

Accidental death rider only promises an additional sum apart from the basic sum assured. People who keep travelling often due to business or leisure or the ones who work in hazardous conditions should opt for this rider

Note: The insured would receive the sum assured even if the cause of death is not an accident. Minus this rider, the basic sum assured is still provided to the nominee.

3. Accelerated Death Benefit Rider

A person dies in an accident every four minutes in India. Shocking, isn’t it?

It can be emotionally and financially draining for the family of a person suffering from a terminal illness. The costs of treatments and medical expenses may rip off the savings of the entire family. This rider comes as a savior for the aggrieved family of the patient during these critical days.

Here, the family of the insured gets a certain part of the sum assured in advance as a compensation towards the insured’s medical treatment and associated costs.

Note: This rider comes at a very low cost and it specifies the amount of sum assured to be paid in advance.

4. Waiver of Premium Rider

Suffering a job loss can be an emotionally and financially wrenching experience.

You’ve known for months that it has been coming, but you stick to the hope that it won’t happen to you. Simply because, you have been there for years and somewhere deep inside you have a feeling that the company can’t survive without you!

This rider ensures that you don’t have to surrender your policy in the event of income loss or due to disability. Additionally, all the future premiums are taken care off too until the expiry of the policy.

The best part is that the policy also stays active even though the premiums are not paid in time.

Usually in the absence of this rider, due to loss of income or any disability, your policy lapses due to non-payment of the premiums on time. Apart from this, you also lose out the death benefit at the time of your death since the policy lapses due to non-payment of the premiums regularly.

Note: You buy this rider and pay premiums regularly to your insurer and if you’re disabled, your insurer pays the premium back to you.

5. Income Benefit Rider

Once you leave this world, how will the income flow for your family continue?

This rider work wonders!

It is useful post the sudden death of the insured especially if he is the sole earning member of the family.

It is usually a part of some of the policies and is used mainly for generating income post death of the insured. A supplementary income every year for 5 to 10 years along with the sum assured is offered to the beneficiary.

Note: The addition of this rider may lead to a slightly higher premium, however, there are certain insurers who may not charge you at all for this rider.

Give It A Thought!

Just as you need a perfect fit for your clothes, you approach the tailor for having an outfit stitched. Similarly, policy riders help you for tailor-made term plans for you and your family's requirement.

With term insurance riders, you can be assured of boosting your term insurance plan. You can opt for accelerated death rider if you are suffering from terminal illness. If you are looking for a reduction in premium due to accidental disability, you can choose waiver of premium rider.

Options are varied. All you need to do is make a smart move by reading its terms and conditions before opting for one.

It makes sense to compare the inclusions, exclusions, features, benefits and terms and conditions provided by different insurers. Don’t forget to analyze your needs before you finalize on one.

Give your folks an opportunity to live peacefully and financially stable, regardless of whether you are around or not.

If you would like more information on these riders or discuss your insurance needs, you can contact for the best tailor-made quotes and top-notch after-sales services.

Janhavi Shinde
Written by Janhavi Shinde
Right from being a Flight Attendant to a Banker and now to a Content Writer, she has tasted success in all the fields. The kinda girl who loves pets and knows how to manage difficult people and events.