That additional pour of chocolate syrup on your vanilla ice cream! Isn't it more satiating to the senses, though we might be craving just the ice cream?

Riders in Life Insurance are just those extra doses of chocolate syrup on our basic insurance policy.

Riders are the add-ons that allow for increased coverage for different situations, otherwise not covered in the basic policy. In the context of life insurance, riders refer to optional additional features or benefits that can be attached to a base life insurance policy. 

These riders provide policyholders with added flexibility and customization options to meet their specific needs. By selecting and paying an extra premium for a rider, the policyholder can enhance their coverage beyond the basic death benefit. 

Let's discuss the major types of Riders in Life Insurance.

Depending on the type of benefit they provide to the policyholder, riders are classified as per the following types:

1. Accidental Death Benefit Rider

This Rider is highly beneficial in dealing with the financial turmoil of the policyholder's accidental death.

In fatal accidents, even if the victim passes away, a lot of medical intervention goes into trying to save that life. There are also cases where the policyholder stays on medical support for days and weeks only to pass away ultimately. The medical bills hit the family's finances, who eventually are also dealing with the personal loss.

To cover these scenarios, the Accidental Death Benefit rider provides the Sum assured to the nominee within 120-180 days from the date of the accident, in cases where the life assured does not immediately pass away after an accident. This helps the family deal with financial loss. Hence, Accidental Death Benefit is one of the most significant riders that must be added to the primary insurance policy.

2. Accidental Total and Permanent Disability Rider

Accidental permanent and total disability is the condition when the Life Assured, due to an accident, becomes permanently disabled and unfit to carry on with any occupation.

For example, loss of both eyes and legs, both arms or one arm and a leg, can be classified as a permanent disability. Such kind of disabilities leaves a person incapable of leading a normal life where they can take up a job and earn for their family.

In such cases, the Accidental Total and Permanent Disability Rider is beneficial in taking care of the family finances or getting treatment for oneself. There is also an option to take this Sum assured in the form of monthly instalments.

3. Critical Illness Rider

The Critical Illness Rider provides extra coverage if the policyholder is diagnosed with any critical illnesses listed in the policy document. While some might differ across insurance providers, cancer, heart ailments, tumours, etc., remain standard across the industry.

The Critical Illness Benefit is provided to the life insured to meet the treatment and household expenses in those times of need. It acts as an Income Replacement plan and ensures that the treatment of the policyholder, as well as the finances of the family, are not hit because of the illness.

4. Waiver of Premium Rider

This Rider ensures that the policy stays active even when the policyholder cannot pay premiums due to physical disability.

The most sought-after Rider, especially in Child Plans, where even if the policyholder cannot pay premiums, the policy continues till maturity. On maturity, the benefits are paid to the nominee, and all this while, the premiums are waived.

This Rider can be availed in cases where:

• The life insured has been disabled for 6 months or more.
• When life insured is diagnosed with any of the critical life-threatening ailments.

5. Terminal Illness Rider

This Rider ensures the Sum Assured is paid to the policyholder on the diagnosis of any terminal illness.

Terminal Illnesses are ailments with a high likelihood of death within 6 months. In these types of illnesses, in addition to the eventual personal loss of the family member, the finances are also hit badly during the treatment.

A Terminal Illness Rider provides much-needed financial freedom in those times of need to put finances in order, take care of medical support, or travel. This Rider comes into effect only after the diagnosis and short life expectancy confirmation.

6. Income Benefit Rider

Life is full of uncertainties, but it's up to us to plan well for all those lemons that life might throw at us. When you buy insurance, you have taken an essential step towards securing your family's future. Besides, there is always scope for better planning.

Under usual circumstances, insurance pays off the death benefit as a lump sum in case of the policyholder's demise. 

However, with Income Benefit Rider, if the policyholder dies during the policy term, the family receives a certain monthly payout with which they can manage their finances better. It acts as a substitute for monthly income in the absence of the policyholder so that the family doesn't struggle to pay bills.

Though the Life Insurance riders come for an additional fee, they are worth it. In addition to strengthening the safety net of the basic Insurance cover, many more benefits make riders an essential addition to insurance planning.

Life insurance riders can provide valuable additional benefits and customization options to your base life insurance policy. However, selecting the right riders requires careful consideration. Here are some steps to help you choose the most suitable life insurance riders:

Determine Your Financial Requirements

Before selecting any riders, assess your specific financial needs and goals. Consider factors such as your age, health, family situation, and long-term financial obligations. Identify potential risks or areas where additional coverage would be beneficial. Choose a rider as per your need.

Research Your Options

Familiarise yourself with the various riders available in the market. Understand how each rider works, what benefits it offers, and under what circumstances the benefits are payable. Research reputable insurance companies that offer the riders you are interested in.

Consult an Expert

It's advisable to seek guidance from a professional who specialises in life insurance. They can help you evaluate your needs, explain the pros and cons of different riders, and guide you through the selection process. An expert can provide personalised advice based on your specific situation and goals. 

Consider Cost

Evaluate the cost implications of adding each rider to your policy. Riders typically come with an additional premium that you need to pay. Assess whether the benefits provided by the rider justify the extra cost. Make sure the premiums fit within your budget and that you can sustain the payments over the long term.

Review Your Policy's Terms and Conditions

Carefully examine the terms and conditions of both the base life insurance policy and the rider(s) you are considering. Understand the coverage limits, waiting periods, exclusions, and any other important provisions. Ensure that the riders align with your expectations and adequately address your specific needs. 

Basic Insurance Plans come with a 'one product, serve all' policy. Riders are a great way to customise your insurance policy as per your requirements.

Here are some essential points to keep in mind while buying the riders for your policy:

• Usually, the total premium of the riders can be at most 30% of the base plan insurance premium. Plan your riders accordingly.
  
• After the policyholder reaches 65 years of age, most insurance companies do not issue a rider. Hence, taking a rider while buying the base policy is advisable.
  
• Ensure to check all terms and conditions of the Rider with respect to the Sum assured, claim settlement and all other conditions.
• While nobody can be certain about the future, we can definitely make an informed assessment of our current and prospective risks. The most appropriate riders should be added to the base plan based on the evaluation to optimise the benefits.

The future is uncertain and not in our hands. However, on our part, we can be prepared to handle this unpredictability. While Insurance is essential to address financial uncertainties, it is sometimes insufficient, and riders provide enhanced and customised coverage to handle different uncertainties. 

Remember that life insurance riders are optional, and you should only choose those that truly complement your circumstances and objectives. It's important to strike a balance between comprehensive coverage and affordability. Regularly review your life insurance policy and riders as your financial situation and needs evolve, and make adjustments as necessary.