What Are Riders In Life Insurance Plans?
Riders can be described as coverage enhancements that one can choose to carry over and above their standard life insurance package, to expand the scope of the coverage. At the moment of buying a policy, or even at the time of renewal, add-on riders can be taken. The rates charged to these riders are above the base plan premium.
Also Read:- What is Accidental Death Insurance Rider?
Common Riders Offered with Life Insurance Plans
Riders are the additional benefits that a policyholder can buy to add on to a life insurance policy. Following are some of the most common riders available in life insurance plans
1. Accidental Death Benefit Rider
In the event, the policyholder dies due to an accident, this rider pays an additional sum assured to the policyholder's dependents. The basic sum assured is already paid, and an additional amount is paid more than the basic sum assured. This insurance cover will be helpful for people who work in unsafe environments or for people who are prone to physical danger daily.
2. Accidental Disability Benefit Rider
If the policyholder suffers an accident that causes a partial or permanent disability, this rider regularly pays the affected policyholder for the next five to ten years after the impairment caused by the accident. This can be very effective in ensuring the policyholder a regular income source.
3. Accelerated Death Benefit Rider
When the policyholder dies from a terminal disease, the accelerated death insurance rider will be very beneficial to the family. This rider pays a portion of the sum assured in advance and will facilitate in managing expenses for the medical care of the patient. This rider is extremely beneficial and comes at a reasonably low price.
4. Critical Illness Benefit Rider
This rider reduces the burden of unnecessary hospital treatments by giving the policyholder a lump sum in case he is diagnosed with a critical illness. Once the critical illness has been identified and payment has been made under the rider, the plan can either continue or end as per the terms and conditions of the policy. In certain situations, the coverage of the policy is decreased by the amount paid out to the policyholder.
5. Waiver of Premium Rider
Under the circumstance that the policyholder is unable to afford the premiums due to any injury or illnesses that contribute to the loss of a career, the waiver of premium rider will be beneficial. It waives future premiums, thus ensuring that the policy stays intact. This rider usually forms a part of a standard term cover. This rider is similar to having all the premium paid before the expiry of the policy term.
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Benefits Of Enhancing Your Life Insurance With Riders
Conclusion
The policyholder must choose riders based on individual and family needs, as they will increase the coverage of the life and more comprehensively protect the family's financial well-being. If you are wanting to enhance the cover already offered by your life insurance contract, having an add-on rider is the perfect alternative. You have lots of choices to pick from with multiple insurers also providing a wide variety of add-on covers over insurance policies.
