Why Should I Add Riders to my Term Insurance Policy?
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Life insurance plans are the safety net for big financial problems that could happen, like dying too soon. Losing the person who brings in the money can be very bad for a family's finances. It can help them get back to where they were socially and financially, and life insurance gives them the money they need to keep going.
You can add an insurance rider to your base policy to get more coverage. For example, the term plan is your base policy when you buy term life insurance.
Why Should You Add Riders to Your Insurance Policy?
Your basic term life insurance plan gets more stars for safety if you add insurance riders to it. But that's not the only good thing about them.
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Enhanced Safety
The most important reason to add riders to your life insurance policy is to protect your family from more than one risk. Death is, without a doubt, the main reason why a family loses money. But accidental disabilities and diseases that could kill you and cost a lot to treat are just as bad, if not worse.
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Improved Coverage
With more riders, your total amount of insurance coverage grows. The critical illness rider can increase your basic life insurance policy's sum assured payout by as much as 25 percent, or Rs. 1 crore. This benefit is especially helpful to riders in cases where an unexpected death is expected to be followed by a lengthy hospital stay and significant medical expenses, such as those resulting from accidents. As a result, the death benefit is unlikely to be enough to cover your family's needs.
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Premium Waiver
If you get a critical illness or become disabled by accident, the riders that cover these risks will help pay for your care. However, losing your job means you'll have to rely on your health insurance to cover the cost of medical care and living expenses.
Should that mean that you'll stop paying for the life insurance? In no way! You can choose the premium waiver benefit to keep your life insurance plan from expiring. Therefore, your life insurance plan may be maintained without further premium payments anytime you file a claim for serious illness or disability.
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Minimal Management Hassles
Riders work with basic life insurance. But if you buy separate insurance for accidents and critical illnesses, you will not only pay more in premiums, but you will also have to keep track of more than one policy. Another problem with buying separate policies is that you won't be able to get benefits from both.
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Special Advantages
Some riders could also add money to help pay for a child's education and other benefits to the basic term plan. This is especially helpful if the main breadwinner in a family dies unexpectedly. It helps the families of policyholders.
Conclusion
Pay close attention to the date on which the insurance policy matures or expires. Certain riders, such as critical illness coverage, could expire before your primary life insurance policy. It's important to be sure that the riders you add to your policy are worth the money you're paying for them, and that adding them doesn't affect your life insurance eligibility.
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