Importance Of Adding Income Benefit Rider To Your Term Insurance Policy

Income benefit rider provides regular instalments and substitutes the income source of the family of the life assured in the event of the unforeseen demise of the life assured during the coverage period. This rider can help you ensure financial stability and a regular source of income for your family even if you are not around. Under income benefit rider a pre-decided number of monthly instalments which is equivalent to the monthly income of the life assured, shall be provided to the family of the life assured in the event of the unforeseen demise of the life assured during the coverage period. One of the major benefits of adding an income benefit rider to your term insurance policy is that you can ensure that your family can meet their daily expenses apart from maintaining a decent lifestyle in the absence of life assured. 

Eligibility Criteria to Add Income Benefit Rider to your Term Insurance Policy

Below mentioned are the eligibility criteria to purchase Income Benefit Rider with Term Insurance policy:

• A person between the age of 18-65 years can purchase an income benefit rider
• The maximum maturity age for an income benefit rider is 75 years
• Sum assured coverage period, premium payment term and premium payment mode for income benefit rider are the same as the base policy

Importance Of Adding Income Benefit Rider To Your Term Insurance Policy

Below mentioned are some reasons that justify that Income Benefit Rider can be a good addition to your term insurance policy:

• Income Benefit: Under this rider regular instalments/monthly instalments are  provided as a payout, in case of unforeseen demise of the life assured during the coverage period. Under income benefit rider a pre-decided number of monthly instalments which is equivalent to the monthly income of the life assured, shall be provided to the family of the life assured in the event of unforeseen demise of the life assured during the coverage period. This rider can help the life assured to ensure a regular source of income for his/her family in their absence.

• Tax Benefits:  Under this rider the life assured can avail dual benefits as premiums paid towards the income benefit rider are eligible for tax exemption under the section 80D of the Income Tax Act, 1961. 

• Economical Option: Income benefit rider provides additional coverage at a reasonable price. The premiums are quite affordable and enhance the power of the policy at nominal cost. This rider ensures financial protection to the family of the life assured and helps the life assured to ensure substitute of income source for the family members in case of an untimely demise of the life assured. You may have to pay an additional premium for the rider but it provides extensive coverage.

• Eliminates the Need of an Additional Policy: Purchasing an income benefit rider eliminates the requirement of an additional policy, as these riders have the same coverage period as a term insurance policy and provide the same level of coverage. If you choose to purchase a rider, you might not require an additional policy.  

To Conclude

Income benefit rider can be a good addition to your term insurance policy as this rider provides financial support to your family in difficult circumstances. This rider helps the life assured to substitute his/her monthly income for his/her family member in case of unforeseen demise of the life assured during the coverage period.

Also Read: 

Life Insurance Riders Frequently Asked Questions

How To Know Which Rider is Suitable For Myself?

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.