How To Buy Riders In Life Insurance?

Depending on your needs, you can add different riders to your life insurance policy. A rider not only improves your policy, but it is also incredibly beneficial to you financially. As a result, you must select a rider based on your requirements.

Financial security is critical for any individual, and life insurance is one of the most crucial tools that can assist contribute to that goal. Anyone who financially supports a family member (dependent) is a perfect candidate for acquiring a life insurance policy, the primary objective of which is to offer financial security to your family in case of your untimely death.

Riders are essentially coverage upgrades that one can choose to add on top of their primary life insurance plan to expand the extent of its coverage. Add-on riders can be purchased at the time of purchase or renewal of a policy. These riders' premiums are in addition to the standard plan premium.

Importance of Having Riders In Your Policy

• Riders Provide For Policy Customization And Personalization

 If you have a term life insurance policy that offers basic coverage against the chance of death, adding an add-on rider to the policy allows you to personalise the plan.

• Riders Make The Insurance Plan More Affordable 

 As previously said, having an add-on rider eliminates the need to acquire an extra life insurance policy. The outcome is that one does not have to pay additional premiums for a separate life insurance policy.

• Riders Remove The Need For A Separate Life Insurance

 Life insurance policies cover a wide range of risks, including permanent disability, total/partial temporary disability, income loss, accidental death, critical sickness, and many others. However, it is uncommon to find a single policy that provides coverage for different risks. 

Most Popular Riders Available With Life Insurance

Life insurance policyholders can choose from a number of add-on riders to supplement the coverage provided by their base plan. Here are some of the most common add-on riders that insurers offer on a regular basis to their customers on nominal costs and utmost personalizations. 

1. Accelerated Death Benefit Rider

• If the insured policyholder is diagnosed with and receiving treatment for a life-threatening illness, the accelerated death benefit rider will pay them a predetermined proportion of the total assured.
• If the policyholder dies as a result of an accident, this rider will pay an additional sum insured (rider sum assured).
• The amount of money of the rider sum promised varies by provider and is calculated based on the base plan principal amount.

2. Critical Illness Benefit Rider

• The critical illness benefit rider, as the name implies, is provided when the policyholder is diagnosed with any of the serious illnesses specified. Following the diagnosis, the rider will pay the insured a lump sum payment to cover the medical expenses associated with the illness's treatment.
• Cancer, stroke, heart attack, paralysis, kidney failure, coronary artery bypass graft surgery, major organ transplant, and other serious conditions are typically covered by the critical illness benefit rider.

3. Waiver of Premium Rider

• This rider essentially waives future policy premiums in the event that the policyholder becomes financially unable to pay policy premiums due to an emergency such as being diagnosed with a serious disease, loss of income, or an accident-related disability.

Conclusion

If you want to supplement the protection provided by your current life insurance policy, purchasing an add-on rider is the best solution. You have a lot of options given that many insurers offer a wide range of add-on covers over insurance plans.

Also Read: Top 3 Riders in Term Insurance Plans

Benefits of Riders in a Child Insurance Plan

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.