Which Rider Options Can Enhance The Coverage Of Your Endowment Policy?

The primary purpose of life insurance is to protect against the danger of dying young. As a result, they function as a source of income. However, one may face a variety of other unexpected and unforeseen hazards throughout one's life, for which a term insurance policy may be ineffective. Purchasing a life insurance policy, such as a term or classic endowment plan, may not be sufficient to cover all risks.

A policyholder's earning ability may be impacted if he or she becomes handicapped due to an accident or otherwise. If you don't pay your premiums on time, your policy will become inactive, and you won't be able to achieve your goal of purchasing the coverage.

During the policy's term, there may also be hospital-related expenses. Invoking the fundamental policy may or may not be helpful or even permissible. What if you want to add coverage to an existing plan while saving money? In such cases, life insurance riders may be useful. 

Which Rider Options Can Enhance The Coverage Of Your Endowment Policy?

Below are a few rider options that can enhance the coverage of your endowment policy:

• Accident And Accident Disability Benefit Rider 

Accidents do not necessarily end in death, but they might handicap the policyholder. In the event of death or disability as a result of an accident, the ADDB grants a claim. Under the ADDB, assurers have a benefit cap of Rs 10 lakh, for example. However, you should double-check before proceeding.

This rider may become active in the event of total and permanent incapacity for some assurers, while it may not be active at all for others. The ability to pay premiums may be hampered in the event of a handicap. In the event of disability, certain assurers may provide a "waiver of premium" benefit, which allows the policy to continue even if the policyholder is unable to pay the premiums. Before purchasing this rider, however, clarify it with your insurance.

• Waiver Of Premium Rider 

If a benefit isn't listed in the ADDB, it can be added as a WOP rider. All future premiums under the basic policy and the rider/s shall be waived until the end of the rider's term or the death of the assured life, whichever comes first if total and permanent disablement occurs as a result of an accident.

• WOP Rider 

Cancer, open chest CABG, first heart attack, and stroke are all covered by this rider. Future premiums and riders (if any) are waived if you are diagnosed with one of these four critical conditions, while your life insurance and any rider benefits remain in effect.

• Women's Critical Illness Rider

This rider protects women against critical illnesses. A fixed percentage of the base plan cover amount (sum guaranteed) will be paid if you are diagnosed with any of the listed illnesses.

• Accidental Disability Income Benefit

A policyholder's earning capacity may be impacted if they become disabled as a result of an accident. In the case of an accident, it guarantees monthly income stability by paying a regular monthly income equal to 1% of the sum assured for a predetermined period of ten years.

• Serious Illness Rider

Also known as the major surgical assistance rider or the feared disease rider, the Critical Illness Rider (CI) provides additional coverage in the event of a critical illness. The supplementary cover is usually equal to the sum assured on the basic policy and is paid after the condition is diagnosed. Cancer, coronary artery bypass surgery, heart attack, kidney/renal failure, major organ transplant, and paralytic stroke are some of the ailments covered by most insurers.

Conclusion

Including a rider in your life insurance policy might let you modify it. Benefits like this are important for consumers who want to keep their risk coverage in one area or with one insurer. However, rather than choosing a rider just because of a low premium, consider the requirement for each individual rider.

Also read: List of Latest Endowments Plans

What To Consider When Purchasing An Endwoment 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.