Riders are like add-on accessories which can be attached to your term insurance plan to enhance the level of protection. Choosing the right rider that will help make your term insurance plan more effective is crucial.
The coverage of a rider comes into play on an occurrence of the specific event. A rider provides the benefit over and above the basic plan.
Waiver of Premium Rider:
A term insurance plan provides financial protection in case of an unfortunate event of death. For this financial security, you have to pay the insurance company a fee which is called a premium. The premium amount is calculated depending on your age, your lifestyle, the type of plan, the sum assured and the policy term. You pay this regular premium amount out of your monthly income. What if you lose your income due to a certain unexpected situation like disability or an accident or a critical illness? And you’re not able to pay future premiums which will lead to losing out your entire life cover. This is when the waiver of premium rider becomes active. It takes the financial burden of paying future premiums off your shoulders for a while ensuring your term plan is still active and you are covered for the rest of your life.
Accidental deaths can happen in no time leaving family members devastated. This can lead to the rise of other immediate emergencies in like hospitalization costs prior to an unfortunate demise. Whatever the emergency may be it requires financial help. To cover for such circumstances, accidental death benefit rider provides an additional sum on top of the base sum assured. The rider is very useful as the number of accidental deaths has increased drastically in the past 5 years.
Accidental Total and Permanent Disability rider:
Accidental Death is one thing and disability is another. Daily 400 accidents take place, some people die while others remained permanently disabled for life!
Now, this sounds traumatizing but it’s a fact which can’t be ignored. A permanent disability will exhaust your savings and also impact your income earning capability thus bringing in an extra financial burden on your family members. An Accidental Total and Permanent Disability Rider will provide you with a lump sum to cater to your immediate expenses thus providing financial stability to you and your dependents.
It is not possible to know what will happen in future but depending upon your needs you can choose the appropriate rider. A rider can give you additional benefits and make your cover more effective for a nominal extra premium. So while buying a new plan you can get the plan with the riders attached to get enhanced coverage.