With numerous life insurance options available in the market, choosing the most suitable one can be a confusing decision. In case you are looking out for a pure life cover policy, you may consider investing in a term plan. Such an insurance policy offers financial coverage in the unfortunate event of death of the policyholder. The death benefit is payable to the beneficiary, which may be used to meet various financial obligations.
Numerous insurance providers offer term insurance plans with a host of features and benefits. Besides, insurers also provide an option to enhance your coverage through the availability of riders. Riders, also known as add-ons, offer extra benefits at an additional premium. Such riders supplement your existing term plan and increase the scope of coverage.
Following are five popular rider options offered with term insurance covers.
- Critical Illness Rider
Critical illness riders offer financial protection for medical conditions and diseases such as kidney failure requiring dialysis, loss of limbs, end-stage liver failure, cancer of specified severity, and major head trauma, among others. A critical illness rider, also known as dread disease add-on, helps you avail of quality treatment without having to worry about arranging finances for the same. Besides, such a rider ensures that indirect expenses are taken care of while you recover from a critical disease.
- Accidental Death Rider
As the name suggests, an accidental death rider offers coverage against an unfortunate event of death due to an accident. In case of death due to an accident, the policyholder’s loved ones will receive the rider sum assured amount along with the basic death benefit amount. For example, if the sum assured of the term plan is INR 10 lakh and the accidental death benefit rider has a sum assured amount of INR 5 lakh, then the insurance provider is liable to pay INR 15 lakh in an event of unfortunate death due to an accident.
- Partial and Permanent Disability Rider
Not all accidents result in death – some may leave you with a disability. During such an event, a partial or permanent disability rider offers financial coverage. The insurance provider offers either a lump sum amount or a regular amount for a period. This rider, therefore, acts as an income replacement in case you are unable to work due to your temporary or permanent disability.
- Waiver of Premium Rider
In an event of disability, you may not be able to have a steady source of income. This, in turn, affects your ability to make a premium payment for the rest of tenure. Opting for a waiver of premium rider is, therefore, a recommended option. All your future premiums are waived off, while your plan continues to remain in force until the term of the policy or death of the policyholder.
- Income Benefit Rider
As the name suggests, an income benefit add-on offers a regular stream of income for the family after the death of the policyholder. Along the sum assured amount, your loved ones are entitled to receive supplementary income every year for a certain period, according to the terms and conditions of the policy.
Riders in term insurance policies provide financial coverage over and above the basic sum assured. You may, therefore, opt for such riders and customize your term plan according to your needs.
