Reasons Why You Should Add Riders to Your Life Insurance Plan

People buy life insurance plans to seek financial protection for their loved ones in case of misfortunate events such as untimely demise of the policyholder. These plans work as emergency backup for emergencies which have major consequences in such events. For a family, it can be emotionally as well as financially devastating to lose a breadwinner. So, a life insurance plan offers the much needed financial strength to stay afloat.   

But there are many causes that can interrupt the financial wellbeing of a family. And hence many life insurance plans come with an option of riders for extra coverage. 

What Are Life Insurance Riders?

Riders in life insurance are additional insurance covers that you can add to your base life insurance policy. For instance, when you buy a term insurance plan, then that will be your base policy and you can add riders in that, by paying an extra premium at the time of purchase. Simply put, riders are extra features that protect you from a host of unexpected tragedies at an affordable premium. These can be attached to all types of life insurance plans- money back plans, ULIPs, endowment plans, and term insurance plans.  

Here are the top reasons why you should add riders in your life insurance plans: 

• Better Protection: One of the most important reasons to add riders in your life insurance plan is that it protects you and your loved ones from more than one hazard. These include life threatening illnesses with expensive treatments, accidental disabilities, etc. 
• Increased Cover: Riders help you enhance your total protection pool, thereby increasing your life insurance cover. For instance, if you have a base life insurance plan with a sum assured of Rs. 1 crore, then you can add Rs. 25 Lakh more by opting for a critical illness rider. 
• Special Benefits: Some riders also offer child education support and several other benefits to a basic life term insurance policy. This helps in case of a misfortunate event of death of a family’s primary provider as it extends support to the family of the policyholder.  
• Premium Waiver: The situation is usually critical in case of a claim arising due to an accident, hospitalisation, critical illness, or untimely death. These situations demand dedicated efforts and attention. If the policyholder is the patient, then there might be a financial crunch as the salary will be sacrificed for this period as he/she will not be able to receive regular salary during this period. In this case, premium waiver riders can be of most help. It lets you avail policy benefits without having to worry that the policy will lapse, due to non-payment of premium. 
• Minimum Hassle of Management: Buying life insurance riders is better than purchasing a separate life insurance cover as it offers the required coverage as well as is a more affordable option. It reduces the hassle of maintaining separate policies, remembering their premium due dates, etc.  

Conclusion

If your family members are dependent on you for the livelihood, and other life activities, then it is certain that they are counting on you and hence you should get an adequate life insurance cover with riders for extended coverage. But it is also equally important to choose the right rider as per after identifying your requirements, for which you can even take help of the experts at InsuranceDekho. Either way, having adequate life insurance cover is a must!

 Must read:  Know All About Income Benefit Rider

10 Most Frequently Asked Questions About Life Insurance Riders

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.