A term insurance plan is considered to be one of the most helpful life insurance cover policies available in the market. They provide you with high insurance coverage at affordable premiums. Apart from the reasonable term insurance quotes, one of the other reasons for their popularity is the riders. A rider is an additional coverage on a policy that can cover specific situations. You should analyze the different risks in your life and add a rider to your insurance plan. By just paying a little extra, you can get additional coverage on specific situations. However, as riders entail additional premium, it will be advisable to look at the rider quotes before including one in your plan.
Important riders that you can include in your term plan:
- Partial and Permanent Disability:
If you meet with an unfortunate accident and lose the permanent or partial use of your limbs, then this rider can be beneficial for you. Such a disability may probably hamper your ability to work or earn a livelihood. The support from this rider during such a time will ensure that your financial worries are taken care of. If an accident renders you fully disabled, you will get the full sum assured. A partial disability will get you a percentage of the sum assured, depending on the extent or the nature of the disability.
- Waiver of Premium:
When you buy a pure term insurance plan, you will have to make premium payments towards the plan for a fixed number of years. However, within that period, if an accident causes crippling injuries to you, then you may lose your ability to work and therefore, cannot make the premium payments anymore. This will lead to the lapse of the policy and you also lose the death benefit. You can avoid this situation by getting a waiver of premium rider so that you need not pay the pending premiums. The insurance company will cancel the premium payment liabilities; however, the coverage will continue uninterrupted.
- Accidental Death Rider:
Apart from the grief of losing a loved one, the death of the only earning family member can cause extreme financial stress to the family as well. Thus, when an accidental death rider benefit is added to the term plan, your family will be provided with an amount equal to the sum assured, to take care of daily expenses. This rider is recommended for individuals who work in high-risk professions.
- Critical Illness:
A lot of life-threatening diseases like kidney failure, heart attacks or cancer can affect you and your livelihood heavily. You would require regular medical attention, and the rising medical costs will be just additional stress in life. When you are diagnosed with a critical disease, a critical illness rider will help you with a lump-sum amount. However, the disease should be listed in the policy.
- Income Benefit:
If you are the head of the family, then there are other family members who depend on you. This rider is an excellent way to take care of your family’s financial needs if something happens to you. Your family will get access to a regular stream of income – annual or monthly, for a fixed period of time, over and above the sum assured.
While choosing from the various term insurance plans in India, you can add additional riders to your policy. The right rider will provide extra coverage to you or your family in case an unfortunate event has transpired. It would help if you looked up the rider quotes and their offerings before getting one.