Top 5 Life Insurance Rider Benefits with Example

An insurance rider is an add-on cover which can be added to your basic insurance plan. For instance, when you purchase a term life insurance plan, the term cover is your basic plan.

Why You Must Include Riders in Your Insurance Plan?

Some of the benefits of including riders to your life insurance plan are highlighted below:

1. Enhances the Cover

Adding a life insurance rider to your standard insurance plan can help in increasing your plan coverage. For instance, in case your basic life insurance plan offers a sum assured benefit of Rs. 75 Lakh, then you can include Rs. 10 Lakh more with a critical illness rider.

2. Allows Insurance Plan Customisation

In case you have a term life insurance policy, which offers basic coverage against the risk of demise, however, adding an add-on cover to your policy allows you to customize the insurance policy. With the correct life insurance rider, you can receive extended coverage against a potential risk that could happen in future and which may not be covered under your insurance plan.

3. Eliminates the Need to Have an Additional Insurance Plan

There are various risks which life insurance plans offer coverage like loss of income, cover against permanent disability, accidental death, critical illness, and many other. However, it is rare to find an example where a single insurance plan offers coverage against various kinds of risks. This is the reason why including add-on covers to your policy is important. You can include a rider to your basic insurance policy in order to receive added coverage, without needing to buy another insurance plan to receive the same coverage.

4. Makes Insurance Plan More Economical

As discussed above, having an add-on cover eliminates the need to buy an additional life cover. Consequently, the benefit that one receives is not having to pay extra premium for a separate life insurance plan. The premiums payable towards an add-on cover are significantly low in comparison to the premiums paid towards a completely functional insurance cover. Thus, having an add-on cover also helps you in saving a tremendous sum of money, which is a good thing.

5. Minimum Hassles for Policy Management

Riders work alongside a standard life insurance plan. However, in case you need to purchase a distinct critical illness and accidental cover, you are not only required to pay additional premiums but also have to manage more than one insurance plan. Also, another drawback of purchasing separate insurance plans is that the combined advantages would not be available.

In a Nutshell

In case you are looking forward to enhancing the safety which your life insurance policy presently offers, getting an add-on cover is the best option. With various insurance companies now providing a wide range of add-ons over the life insurance cover, you as a policy buyer have several options to select from.

You may also like to read - What Is The Importance Of Purchasing Accidental Death Benefit Rider

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.