What Riders Are Suitable With An Endowment Policy?

Endowment policies are a unique combination of savings and insurance. These types of life insurance provide life cover and also offer an investment option. Under endowment policies a death benefit is provided to the nominee in case of a sudden demise of the life assured during the coverage period, in case the life assured is able to survive the entire policy tenure, a maturity benefit is provided to the life assured at the end of the policy term. Endowment plans provide a wide range of benefits in itself but you always add rider to an endowment policy to enhance the power of coverage of the policy.

Riders are add-on features or additional coverage that can be added to the policy at the time of policy issuance in exchange of additional premium. These riders enhance the coverage of policy and provide additional coverage which is not already included in the policy. Some popular rider options are Critical Illness Benefit, Accidental Death Benefit, Accidental Total and Permanent Disability, Income Benefit Rider, Accelerated Terminal Illness Benefit etc.

Riders Which are Suitable For an Endowment Policy

Below mentioned are some rider option which are suitable for an endowment policy:

• Accidental Death Benefit Rider

  Accidental death benefit rider provides sum assured along with rider benefit amount in the event of an unfortunate demise of the life assured during an accident. In the event of an unforeseen demise of the life assured with 120 - 180 days from the date of occurrence of the accident the nominee shall be provided with sum assured along with rider benefit. 

• Accidental Total and Permanent Rider

  Accidental total and permanent rider provides a lump sum to the life assured in case the life assured suffers total or permanent disability caused during an accident, preventing the life assured to earn a living for themselves and their family. 

• Critical Illness Rider

  A critical illness rider provides financial aid to the life assured and the family of life assured to fulfill expenses of treatment of any major critical illness diagnosed during the coverage period. The critical illnesses are listed under the policy terms and conditions. 

• Waiver of Premium Rider

  Waiver of premium provides financial aid to the family of the life assured in case the life assured is diagnosed with a critical illness, sufferers total or permanent disability or accidental demise of the life assured during the coverage period. Under this rider all future payable premiums get waived off in cse any of the above mentioned instances occurs. 

To Conclude

Although, an endowment plan offers a wide range of advantages and features to a person. It is a great choice for investors who have a low risk appetite. You can add riders to enhance the coverage of the policy, above mentioned information can help make an informed decision. 

Also read: Figuring out Endowment Plans

 Types Of Endowment Plans In India

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.