It can be taken only with a life insurance plan
The premium rates of riders are less than term insurance
Sum assured of riders is normally less than basic insurance cover
Riders are useful when an untoward incident occurs to a person
What are the different types of riders associated with term plans?
Accidental Death Rider
Simply buying a term insurance plan will give you normal death benefit (the sum assured amount). But, having a rider offers you supplementary sum assured if you pass away due to an accident.
- Applicable only in the case of an accident
- Since this rider covers untimely death (accidents), premium charged is low
- Premium is generally 60-70% of term insurance
- Those travelling frequently or work in dangerous conditions
- If death occurs within 3 months of accident, the family is entitled to appended sum assured
- Limit is imposed on maximum sum assured of death benefit rider
- Premium is fixed for whole term of the insurance
Permanent and Partial Disability
You meet with an unfortunate accident causing you to lose your arms or legs. Due to this, you are disabled for the rest of your live, and your livelihood is snatched from you. Regardless of whether you succumb or survive disabled in the accident, your family would equally be left in the lurch. Your financial burden needs to be borne by someone, right? That is exactly what a disability cover does. It covers that risk and substitutes your income for the family’s future.
- It comes into force only if disability occurs due to an accident
- Total disability gives you full sum assured. Partial disability gives partial sum assured
- The amount may also be compensated in installments
- Most insurers pay regularly for 5-10 years in certain rate of sum assured
- The terms and conditions of this rider differ from one insurer to another
- This rider is most often combined with Accidental Death Rider
Major illnesses like Cancer, heart attack, kidney failure, coronary artery bypass and paralysis can affect you temporarily or permanently. You would require higher medical costs and your financial worries can shoot up. Critical Illness Rider can compensate you with a lump sum amount if you are diagnosed with a medical illness that has been pre-specified in the policy.
- Read the policy document carefully to know what illnesses are covered in the rider
- Rider covers cost of critical illnesses unlike health insurance
- It compensates loss of earnings
- It lasts till the term insurance policy
- The premium of the rider does not increase till the complete duration
- Both general and life insurance companies offer this rider
Waiver of Premium
You have been paying term insurance premiums, but due to disability, you stop earning and are unable to pay premiums for the entire term. Generally your policy expires and you gain no-death benefit due to non-payment of premiums. Thankfully, if you have this rider, then your premiums are waived off in the event of disability during the term of your premium.
- The rider waives of your premium, but the policy still remains active
- It reduces your financial worries of paying future premiums
- The question of faltering in payment of premium does not arise
- Suitable for those with a risky lifestyle where accidents are high at stake
Income Benefit Rider
Once you expire, how will the income generation for your family continue? This rider does the trick! Your family/nominee gets additional income for the next 5-10 years along with the sum assured amount.
- A certain percentage of the sum assured will be received by the family/nominee
- It is more suitable for wage/salaried earning individuals who are bread-winners of their family
Accelerated Death Benefit Rider
If you are suffering from terminal illness, you miserable family would have to bear huge medical expenses for your treatment. With this rider, your will get partial advance amount of your sum assured when you are critically ill. If you have less than 12 months left to survive, the advance payment can be used for the treatment and costs required to stay alive. The remaining amount is paid to the family/nominee once you are no longer in this world to support your family emotionally and financially.
- The rider would specify the one-time lump sum advance payment of a portion of the death benefit
- It is a low-cost rider
- Financially beneficial for your family during your last days as well as after you go away
With riders, you can be assured of boosting your term insurance plan.
You can choose waiver of premium rider if you are looking for reduction in premium due to accidental disability. The permanent disability and accidental death riders ensure that your family doesn’t go into deep financial crisis once you are gone. While the accelerated death rider can reduce your family’s financial burden if you are suffering from terminal illness. Whichever rider you select, do not forget to read its terms and conditions before opting for one.
Why compromise with your loved ones when you can easily get term plan riders by shelling out a little extra? Give your folks an opportunity to remain financially stable. Let them live peacefully with your memories, regardless of whether you are around or not.
Discover term insurance riders. Get quotes from Coverfox.com