Different Types of Riders in Term Insurance Plans in India

Accidents are unpredictable, and anyone can be a victim of them. In such financially traumatic situations, the accidental death benefit rider pays the supplementary sum assured to the beneficiary in case of the policyholder’s untimely death due to an accident. The sum assured is paid within 120-180 days from the date of the accident.

However, this rider does not provide benefits in case of death due to suicide, self-inflicted injuries, substance abuse/overdose, and participation in riots or rebellion.

Who Should Opt for an Accidental Death Benefit Rider?

Individuals prone to higher life risks, such as construction and mine workers or those who travel frequently

Critical Illness Rider protects financially if the policyholder has been diagnosed with one of the critical illnesses pre-specified in the rider and covers the high medical costs of the treatment, up to the amount of rider chosen.

It compensates the loss of earnings with a lump sum amount. The rider is active till the term insurance policy duration although its benefits can be claimed only once.

Who Should Opt for Critical Illness Rider?

Individuals with a family history of serious health conditions or those who are the sole breadwinners of their family.

Waiver of Premium Rider in term insurance waves off the future premiums to provide financial respite to the policyholder who may be suffering from a disability or loss of income and cannot pay future premiums.

If you become permanently disabled, you won’t have to pay any more premiums for your term insurance policy. However, your policy will stay active, and the coverage amount will remain the same until the policy ends.

If you are diagnosed with a critical illness listed in your policy, you won’t have to pay any more premiums. Just like the disability rider, your policy will continue to be active, and the coverage amount will stay the same until the policy ends.

This ensures that the policy continues till maturity even in case of non-payment of premium, thus reducing your financial worries.

However, this term insurance rider can only be availed of if the policyholder has been disabled for six months or more or has been diagnosed with any life-threatening illnesses.

Who Should Opt for Waiver of Premium Rider?

People who are more at risk of getting injured or falling ill or have dependents, and parents with dependent children.

Income Benefit Rider is an add-on to a term insurance policy that provides financial support to your family if you pass away during the policy period. Instead of receiving a lump sum, your family will get the insurance amount as a monthly income for a set number of years.

Who Should Opt for Income Benefit Rider?

The Income Benefit Rider is ideal for those who want to ensure their family receives a steady income over several years instead of a lump sum after their death.

Purchasing riders in term insurance can be highly beneficial for several reasons:

More Economical

Term insurance riders are an economical way to enhance the policy's coverage. By paying a minimal additional premium, a rider can get additional significant benefits and provide support in situations where additional funds might be needed.

For example, if you get a critical illness rider, you will receive a cash payout if you are diagnosed with a serious illness, which can be very helpful with medical bills.

Comprehensive Protection

Term insurance riders provide enhanced protection to families when faced with financial turmoil such as accidental death, terminal illness, permanent disability, etc. Choosing the appropriate term riders can cover the medical expenses and provide the death benefit to support the family.

Saves Money

It's usually cheaper to add a rider to your existing policy than to buy a whole new insurance policy for the same coverage. This way, you get the extra protection you need without spending too much.

Personalized for You

With riders, you can make your insurance policy fit your exact needs and life situation. Whether you need an extra payout in case of an accidental death or you want to make sure your premiums are covered if you lose your income, there's a rider for that.