Depending on your needs, you can add several riders to your life insurance. A rider not only improves your policy but is also very beneficial to you financially. As a result, you must buy a rider based on your requirements.
Anyone who provides financial support for a family member instantly qualifies as an excellent candidate for buying a life insurance policy, which is primarily intended to safeguard your loved ones financially in the event of your untimely passing.
Life insurance riders are simply policy upgrades that one can choose to add on top of their basic life insurance plan to broaden the coverage it provides. Add-on riders may be chosen when purchasing a policy or even when renewing an existing one.
These riders are charged premiums in addition to the standard plan payment. A life insurance calculator is an easy-to-use tool to check the amount of premium you would have to pay.
The value of a supplemental rider
- Allow for the customisation of policies – Having an add-on rider with your term life insurance plan, which offers basic protection against the chance of passing away, enables you to modify the plan. You can acquire better protection against a prospective danger that may not be covered by your insurance by adding the appropriate rider.
- Making insurance more affordable – Having an add-on rider eliminates the need to get a second life insurance policy, as was discussed in the preceding point. One gains the benefit of not having to pay additional premiums for a different life insurance policy as a result. When compared to the premiums required for a fully functional life insurance plan, the premiums for an add-on rider are much lower. You can make a comparison of the various premiums using a life insurance calculator.
- Eliminates the need for a second policy – Life insurance policies offer protection against a wide range of hazards, including coverage for a critical sickness, accidental passing away, total or partial disability, income loss, and many others. Without having to buy a different policy to receive the same coverage, you can add a rider to your base plan to get more coverage.
The most popular life insurance add-on riders
- Accelerated death benefit rider – The accelerated death benefit rider will pay a predetermined portion of the assured amount to the insured policyholder in the event that they have been identified as having and are currently receiving treatment for a life-threatening illness. This rider can be of immeasurable financial assistance, particularly when the policyholder’s family must use the majority of their funds to pay for the insured’s treatment.
- Accidental death benefit rider – If the policyholder loses their life as a result of an accident, this rider will provide an additional sum insured (rider sum assured). The base plan sum assured is used to calculate the rider sum assured, which can vary from provider to provider.
- Critical illness benefit rider – The critical illness benefit rider, as its name suggests, is provided if the policyholder is found to have one of the critical illnesses on the list. Once the sickness has been identified, the rider will give the insured a lump sum payment to cover any associated medical costs. A multitude of critical illnesses, including cancer, stroke, heart attack, paralysis, kidney failure, surgery to replace a major organ, etc., are typically covered under the critical illness benefit rider.
- Rider for accidental disability benefit – If the insured policyholder sustains a permanent or partial disability as a result of an accident, the accidental disability rider goes into effect. After the accident, this rider serves as a source of income for the insured and their family by paying them a set payment, which is a set percentage of the sum promised, on a regular basis for a certain number of years.
- Income benefit rider – When a policyholder wishes to make sure that their loved ones’ immediate and future needs are met, the income benefit rider can be beneficial. In accordance with the income benefit rider, in addition to the sum assured provided by the base plan, the beneficiary is entitled to receive an additional sum of income each year for a predetermined number of years.
- Waiver of premium rider – This rider essentially waives future policy premiums in the event that the policyholder becomes unable to pay them due to an emergency, such as receiving a critical illness diagnosis, losing their job, or being disabled as a result of an accident. The main benefit of these life insurance riders is that coverage is maintained even after the premiums have been eliminated. The policyholder’s policy will lapse once the grace period expires if they have not chosen this coverage but are unable to pay future insurance premiums because of an emergency.
Adding an add-on rider to your life insurance policy is a good choice if you want to increase the protection it currently offers.
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