One of the standout features of a term plan is that you can customize your life insurance as per your specific needs, through the use of riders. Riders are additional endorsements that you can purchase alongside your insurance policy to increase the sphere of benefits. Essentially, riders further strengthen the plan by offering multiple other benefits in addition to the core offering of the death benefit.
Further, most term insurance plans allow you to select between a variety of riders. However, the cost and conditions of these riders vary from one term plan to another, depending upon the amount of premium and the insurer. While some riders are included as part of the term insurance plan, there are others that could be purchased separately. Here is an insight into the world of Riders and their importance in your term plan.
Accidental Death and Disability Rider: Helps Meet Expenses Arising Out of Unexpected Accidents
During the policy tenure, in case the policyholder passes away due to an accident, this rider ensures that the nominee receives an additional sum assured, over and above the life cover amount. The rider is especially usefuplanl for individuals working in detrimental conditions or who frequently travel for business purposes.
Overall, the Accidental Death Rider benefit offers a sizable cover at a relatively affordable cost to your familyin times of need. Even if the policyholder meets with an accident and becomes partially or permanently disabled because of it, this rider would come into force and function as a source of income.
Critical Illness Rider: A Must If Your Family Has A History of Serious Health Concerns
Serious health condition such as stroke, cancer, paralysis and kidney failurescan incur a severe dent you’re your savings due to the mounting medical expenses and high treatment costs associated with them. With a Critical Illness Rider; however, you would receive a lump sum, in case you are diagnosed with a critical illness pre-specified in the term policy.
Critical Illness Rider option from reputable insurers such as Future Generali provide insurance cover for a variety of health conditions including cancer, kidney failure requiring regular dialysis, coronary artery bypass graft surgery and major organ/bone marrow transplant. Therefore, it is crucial to read the policy document thoroughly to understand the specific terms and conditions associated with this rider.
Waiver of Premium Rider: Keeps Your Life Cover Active
If you are unable to pay the future premiums further due to disability or income loss, the Waiver of Premium Rider helps waive off the remaining premiums. Even then, the policy continues to remain active and provide its benefits without any break.
In case the rider is absent, and yousuffer any disability after meeting with an accident or faceincome loss, and subsequently, fail to pay premiums further, the plan would expire.
Income BenefitRider: Provides A Regular Income to Support Your Family
The primary function of this rider is to generate steady income after the untimely demise of the policyholder. With this rider; therefore, your family receives additional income per annum for a specific period, over and above the regular sum assured. Subsequently, the additionalincome would provide the necessary financial cushion to help your family overcome the panic of the sudden loss of income, once the breadwinner is no more.
Before you go about including riders as add-ons in your term insurance plan, you need to thoroughly understand the riders, their associated benefits, any inclusions and exclusions. Most importantly, you need to compare the differentrider costs offered by different insurers.
To purchase the best term insurance plan for your family; therefore, you would have to take an informed decision only after carefully deliberating over all specifics offered under the rider benefit. Term insurance is an essential part of yourcontingency planning, and the presence of riders would undoubtedlyhelp you create a more extensive financial support system.