Must Have Life Insurance Riders

Uncertainty is nothing new to insurance purchasers. They are, in reality, one step ahead of the game and better equipped. However, while choosing a term insurance plan, most consumers overlook the risk of serious illnesses and impairments. It is never easy to survive a horrible event or a serious disease. While it is a huge relief to make it out alive, any type of impairment just adds to the mental and financial stress. Although a tragic accident – or the handicap that results from it - is beyond one's control, one may certainly protect oneself and their loved ones from the impending financial hardship.
On the one hand, term insurance provides complete financial coverage to dependants in the case of the policyholder's untimely death, but it is insufficient to cover the risks of surviving a serious accident or sickness. This is when insurance riders are useful. Term insurance riders are add-ons to the main policy that give extra benefits to the policyholder for a minimal fee. These riders not only protect you from these tragic circumstances, but they also make your policy more complete. To know more about the life insurance riders one must have, read on.

Life Insurance Riders That One Must Have

Following are some of the listed life insurance riders that one must have -

1. Accidental Disability Rider

This rider, as the name implies, provides additional coverage to the insured individual in the event of an accidental handicap. It's no secret that India is a hotspot for fatal road accidents, with government figures estimating that 1.2 lakh people died in accidents in 2020 alone, with many more injured. Unfortunately, accidents do not just happen in vehicle accidents and railway catastrophes; they may also happen in safer areas like offices or residences.
No one can predict the consequences of a sudden death. Even if the policyholder escapes a serious accident, the chances of permanent impairment are considerable. This not only affects the family's financial resources, but it also threatens to eliminate a regular source of income from employment. It's best to have an accident disability rider added to your policy to help you deal with the severity of such a loss. For example, if you choose a rider with a cover of Rs 25 lakh, the insurer would pay you this amount if you become disabled as a result of an accident.

2. Critical Illness Rider

We live in a world where diseases are no longer so uncommon. Heart attacks, strokes, renal problems, and cancer are all life-threatening disorders that often have no warning signs and can destroy a whole family. While health insurance may cover hospitalisation costs, many people restrict the degree of treatment/care they receive based on their health insurance coverage, which is often limited to what the employer gives and therefore insufficient. Having an additional source of funds on hand in such a case aids in the decision to seek better medical care, increasing the chances of survival and a speedier recovery. Similarly, having this additional cash on hand can allow you to take unpaid vacation for the following 2-3 months without having to worry about EMIs or how you'll cover your costs during that time.

3. Waiver of Premium Rider

In most circumstances, an accidental handicap renders a person unemployed, making continued term insurance all the more vital in this situation. However, due to the loss of work, the policyholder may be unable to pay the periodic payment. This waiver of premium rider allows you to keep your insurance valid while waiving your future premiums in the event of a claim. When you're ready to acquire a term insurance policy, don't forget to evaluate different options and check out these riders in detail, then add them to your policy as needed.

Endnotes

A rider is an effective approach to increase coverage on an existing life insurance policy for an insured individual in the long run. Unique difficulties are treated on a case-by-case basis because of the wide covering. As a consequence, an individual may select the rider that best meets their needs.

Also read- Are Life Insurance Riders Worth for investment?

Life Insurance Riders You Must Consider

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.