Some Reasons To Add Riders To Your Life Insurance Policy

Life insurance policies are emergency backups that come in handy when something unforeseen occurs and causes a major financial setback such as an untimely demise of the life assured. For a family who depends on a single person for their financial needs, losing the sole breadwinner can be emotionally and financially devastating.

As a sole breadwinner, a person’s first priority will be to ensure financial safety for their loved ones in case something unforeseen takes place. A life insurance provides a death benefit to the family of the life assured in case of an unforeseen demise of the life assured during the coverage period allowing the family of the life assured to maintain a healthy lifestyle in the absence of the life assured. 

What Is A Rider? 

A life insurance rider is additional coverage that one can choose to add in their life insurance policy in exchange of additional premium. The chosen rider provides additional coverage and increases the coverage of the base policy. There are several life insurance riders available such as Accidental Death Benefit, Critical Illness Rider, Waiver of Premium Rider, Accelerated Terminal Illness Rider, Hospital Cash Rider, Surgical Care Rider, Income Benefit Rider, Accidental Total and Permanent Disability Rider etc. Every rider has a different purpose, one can choose a rider according to their needs. 

Some Reasons To Add Riders To Your Life Insurance Policy

Life insurance does increase the coverage of the policy but that’s not all. Below mentioned are some reasons why you should add riders to your life insurance policy:

1. Better Protection:

One major reason to add riders to life insurance policy is to ensure that your family is financially protected from different unforeseen events that may take place. Death is definitely unpredictable but there are several other things that can cause problems such as disabilities caused in an accident, critical illness treatment etc. These unpredicted can also become a financial barrier and riders can help in providing financial protection to the family and the life assured in case such unpredictable events occur.  

2. Increased Coverage:

Life insurance riders help in increasing the total protection pool. These additional coverage help in increasing the power of base coverage. In case of an financial emergency such as hospitalisation of the life assured for the treatment of a life-threatening disease, the life assured and their family members may have to bear the burden of hospitalisation expenses, that’s where riders come in handy. For example a person who has a term insurance chooses to add a critical illness rider which will help in providing financial support in case the life assured is hospitalised for treatment of critical illness as mentioned above. 

3. Special Benefits:

Many times certain benefits which are provided under a life insurance rider may not be included in the base cover of the life insurance policy. Adding a life insurance rider can help an individual to avail special benefits which may not be covered under life insurance policy. For example waiver of premium rider waives of all the future payable premiums of the life insurance policy in case of unforeseen demise of the life assured or accidental and total permanent disability of the life assured caused in an accident.

4. Minimal Management:

Riders work with life insurance policies. However, if an individual purchases an accident or critical insurance cover separately, he/she will not only pay additional premiums but also manage more than one policy at the same time and will not be able to enjoy combined benefits but if an individual purchases a life insurance rider they can enjoy combined benefits while managing one policy. 

To Conclude 

One should definitely consider purchasing a rider with their life insurance policy because they increase the coverage at an affordable premium rate, help in customising the life insurance policy and help in availing dual tax benefits. It is very important to choose a rider which is best suitable according to one’s need and their life insurance policy.

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Why Should You Consider Riders For Your Life Insurance Policy?

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.