What Riders Are Suitable For A Retirement Plan?

Retirement plans are also known as pension plans. The main objective of purchasing a retirement plan is to ensure a steady flow of income after retirement. Considering inflation, investing in such plans is becoming essential. Retirement plans are a combination of life insurance and an investment tool, these plans help you accumulate a part of your savings over a long period of time. With the help of a retirement plan you can ensure a steady flow of income after retirement. There are certain riders which can help you enhance the power of base coverage of your retirement plan. Riders are basically additional coverage that can be purchased with any type of life insurance policy to enhance the coverage of the policy.

What Riders Are Suitable For A Retirement Plan?

Below mentioned are some rider which are a good choice to opt for with retirement plan:

• Waiver of Premium Rider

  A waiver of premium rider is non-linked rider which provides financial assistance to the life assured and the family of the life assured from the uncertainties of life. Under the waiver of premium rider all future payable premiums get waived off in case the life assured is diagnosed with a critical illness, suffers total and permanent disability or in case of an unforeseen demise of the life assured. In case an unforeseen event takes place, this rider provides financial protection to the family of the life assured. 

• Critical Illness Rider

  A critical illness rider provides financial aid to the life assured and the family of the life assured, in case he/she is diagnosed with a critical illness during the coverage period. In case the life assured is diagnosed with a critical illness such as organ failure, heart diseases, cancer, heart attack etc. a rider sum assured shall be provided to the life assured and his/her family to fulfill the immediate or long-term medical expenses without worrying about the funds. 

• Accelerated Terminal Illness Rider

  Accelerated Terminal Illness rider provides financial aid to the family of the life assured in difficult times. This rider provides a death benefit in advance in case the life assured is diagnosed with a terminal illness during the policy tenure. The benefit amount under this rider shall be provided in case the survival chances of life assured are low due to the terminal illness. 

To Conclude

Riders can increase the power of the insurance policy in exchange for an additional premium. Above mentioned riders are suitable for a retirement plan, one can choose from these options according to their insurance requirements and budget. 

Also read: What Is The Importance Of Retirement Planning?

Understanding The Different Types Of Annuities Under A Retirement Plan

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.