Riders are like accessories which can be attached to the main merchandise to increase its value and functionality. An accessory like winter gloves will be of great use for a place like Jammu but they won’t serve the purpose if you live in Rajasthan. Similar happens with insurance riders too. You have to select the right rider that will help make your plan more efficient for an extra premium payment that you are paying for it.
Riders are by and large additional protection that you can add to your base term insurance plan. The coverage of a term insurance rider comes into play on a specific event and provides the assistance over and above the basic plan.
Critical illness rider helps cover the cost of critical illness on diagnosis. It provides you with lump sum benefit so you don’t have to spend your savings on the expensive treatment. If unfortunately critical illness results in the death of the policy holder then term insurance plan benefit will be paid to the nominee.
“Waiver of Premium” rider keeps your term plan active even when you can’t pay premium due to some circumstances. For this financial security, you have to pay the insurance company a fee which is called premium. The premium amount is calculated depending on the type of plan, coverage, the term of plan etc. You pay this amount out of your income and taking money out of your monthly budget. What if you lose your income due to a certain unexpected situation like disability due to an accident or critical illness and are not able to pay the term insurance plan premium to keep it active, the waiver of premium rider play its part.
“Accidental Death” rider meets costs arising out of unpredicted accidents which can be distressing for the family. Accidental deaths mostly happen in no time which leaves the family and dependents devastated. Whatever the emergency may be it requires financial help. To cover for such circumstances, accidental death rider gives additional sum on top of the base sum assured. The rider is very useful for people working in dangerous conditions as it provides the extra financial help especially when your family needs it the most.
If someone is sole bread winner of the family and something happens to them then it becomes very difficult for the family to replace that income. Income benefit rider will help the dependent family with a regular income for a fixed number of years. This financial bolster will support the family to have a smooth transition to another source of income without creating a panic of sudden loss of income from the main source of income.
You have no control on your own life but you can certainly have a control on how your loved ones live if something happens. Choosing the right riders would help you get the benefits of different plans in one without as much the cost of others. So, make sure with your insurer about riders and add them to your plan at the moment.