Should You Purchase Add-Ons With A Term Insurance Plan?
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Once you've decided on the term insurance plan and an adequate sum assured that's right for you, the next step is to look for the appropriate add-ons (riders) that are offered to help you make the most of your plan. Riders are an optional benefit that you may acquire in addition to your insurance plan for an additional fee. You can choose from a variety of riders with an online term life insurance policy.
Should You Purchase Add-Ons With A Term Insurance Plan?
The advantages listed below will guide you in answering the question.
1. Additional Coverage
A term plan is a pure life insurance plan. A basic one covers a life assured and family's financial needs if he/she dies during the policy's term. Now, if a life assured is involved in an accident and becomes permanently crippled, having riders such as accidental disability and premium waiver on disability can be a lifesaver. The life assured will receive the sum assured for the accidental disability rider in this case. He might put the money toward treatment or anything else. Meanwhile, since he/she has the waiver of premium on disability riders, he/she will no longer be required to pay the insurance premium. However, the policy would continue active until the end of the term, with the same sum assured.
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2. Affordable
You can avoid the price of purchasing separate critical illness insurance by using the correct rider benefits. You can also customise your term insurance plan by adding riders that meet your specific needs and goals. Accidental death and critical illness insurance are available as stand-alone plans as well as riders; however, riders are less expensive.
3. Easy To Buy
You don't have to sign any additional documents when you buy a rider with a term insurance policy. All you have to do is declare the riders you wish to include with your term life insurance policy, and your premium will be calculated accordingly. You do not need to go through a separate medical check-up if you are purchasing riders like a critical illness or a premium waiver for a critical illness.
4. Special Benefits
As a stand-alone policy, the accidental disability rider is not offered. As a result, if you want to use them, you must purchase them as an add-on to your term insurance policy. The waiver of premium riders, on the other hand, are only applicable to your term life insurance policy. If you don't have a term plan, you don't require this type of plan.
5. Tax Benefits
You may save money and maintain your insurance coverage within your budget by taking advantage of tax reductions and exemptions under Section 80C, Section 10(10D) of the Income Tax Act. It helps in the saving of your hard-earned money. Moreover, you can also get tax benefits under Section 80CD of the Income Tax Act if you purchase a critical illness rider.
Endnotes
The riders' premium is determined by the basic sum assured. Of course, some riders are inexpensive, while others are costly. However, when purchasing term life insurance, you should seek riders to make your coverage more comprehensive at a lower cost.
Also Read: Term Insurance With Critical Illness Rider - Let's Know the Condition
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.
