What are the different types of Riders in Term Insurance?

7/24/2019 RAWAT 0 Comments

Life is unpredictable, and you never know a playing child, a healthy man, a sitting person may face death in any situations of time under any circumstances. So, getting term insurance could provide death benefits in the form of sum assured. Several accidents or people falling prey to various critical diseases are on the rise. It is advisable to purchase a rider on top of the base plan. This would ensure that the sum assured is sufficient to fulfil a person’s need.

There are various categories of riders associated with Term Plan, which is available in India. These are:

1)      Accidental Death:

If death is caused due to accident, in such case accidental death rider is beneficial. Accidental Death rider provides supplementary sum assured in such cases. The premium charged for this rider is low generally between 60-70% of sum assured. People who travel frequently or for people who work in under challenging conditions, for the Term Insurance is vital. There are certain limits imposed on the sum assured.

2)      Permanent and Partial Disability:

If you are permanently disabled due to some accident, then Permanent and Partial Disability Rider is what you need. This is only for disability occurring due to accidents. Total disability will provide complete sum assured or partial disability provide partial sum assured. Few of the companies offer installments for 5 to 10 years. It also combined with Accidental Death Rider.

3)      Critical Illness Rider:

Some major diseases like heart attack, kidney failure, coronary artery bypass, etc. could affect our lives in many ways. It could be very costly. In such cases, riders provide a diagnosis for medical illnesses which was already pre-specified in the policy. Riders would cover the cost of a critical illness but not like health insurance. Lots of earnings are compensated.

4)      Waiver of Premium Rider:

If during payment of term insurance plan, there occurs an accident due to which you are unable to work, and you don’t have any source of income. In such cases the policy expires, so you would be spared if you have a waiver of premium rider. All premiums are waived off during disability at the term of the premium.  Even if the company pays premiums, the policy doesn't expire. It is well suited for people with risky lifestyle wherein the accidents rates are higher.

5)      Income benefit Rider:

One must always think about family, what they will do once you are no more in this world. So in such cases, it is always suggested to purchase Income Benefit Rider. It provides additionalincome to family for the next 5 to 10 years apart from the sum assured which is provided after the insured's death. A percentage of sum assured to given to the family or nominee. It is always recommended for the breadwinners of the family.

6)      Accelerated Death Benefit Rider:

In case you are suffering from some illnesses, and you got jobless, then you will have to bear the medical expenses for your treatment. Using this rider, you can receive a partial amount of sum assured for treatment.  This expense can be used for treatment or medical expenses if you have only 12 months left to survive.  The rest amount is paid to the nominee to support them in case of loss of their dependent family member. This rider is a low-cost rider.

Depending upon our family conditions, we must choose a perfect term insurance rider to ensure that we can live with enough money even after the death of the breadwinner. It is always important to read all the terms and conditions before purchasing a rider because different companies have different conditions for providing policies.
In the end, stay safe, stay insured.