Term Insurance Riders You Should Watch Out for

The main objective of buying a term insurance plan is to make sure that your family members are financially protected even after your demise. A term insurance plan provides adequate coverage to your family members by providing a sum assured on the death of the policyholder, this is probably the main reason why people prefer buying a term insurance plan.

Different Term Insurance Riders

A simple term insurance plan is not sufficient during these times, especially after taking into consideration various lifestyle diseases around us. Making sure that your family is covered well even when a major illness strikes them is extremely important. A term insurance riders provide extended coverage against various lifestyle diseases, accidents, etc that generally most of the standard plan do not take care of.

Given below are a few term insurance riders that you may wish to add to your standard insurance plan.

• Accidental Death Benefit Term Insurance Rider

In case, the policyholder dies because of any unforeseen accident, the family members get a sum assured on term insurance as well as on the term insurance riders. For instance, in case you buy a term plan that promises you with a sum assured of Rs 90 Lakh, and an accidental death benefit rider for Rs 30 Lakh, then due to the unforeseen demise of the policyholder in an accident, the nominee is entitled to receive both the amounts.

• Critical Illness Term Insurance Rider

There are certain diseases that can leave you temporarily or permanently disabled and out of work. The expenses to treat these diseases can turn out to be in several lakhs alongside, an individual doesn’t even receive their monthly income. By purchasing a critical illness rider, the healthcare expenses would get taken care of, which can ease the financial burden on the family members.  A critical illness rider permits the policyholder to undergo the diagnosis of any critical illness like heart attack, paralysis, stroke, cancer, kidney failure, etc.

Must read: Common Exclusions Under Life Insurance Riders

• Income Benefit Rider

Under this rider, a policyholder can select to opt for the sum assured to be paid in monthly installments for a specific time period. It would ensure that the monthly needs of your loved ones are met. With this rider, a policyholder can take a decision regarding how they would want to distribute the sum assured to their family.

• Permanent and Partial Disability Rider

Life is an uncertain ride and there are many unforeseen events that can result in death or can leave your family members with partial or permanent disability. A disability can be either partial or permanent and can leave you confined to your bed. This can eventually result in loss of job, zero income and a variety of other medical expenses. A sum assured on term insurance in these conditions is payable only after your demise, which won’t be of any help in your present condition. However, with a disability rider, one can receive their sum assured for the rider as has been paid as income for pre-decided term.

Also read:

Pros and Cons of Buying a Term Insurance 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.