If you have a term life insurance policy, it means you have taken the necessary steps to secure your family’s future. The term policy ensures that your loved ones do not have to compromise on their dreams and lifestyle, even if you are not there. However, you can still ensure more significant financial stability for yourself and your dependents by opting for riders. Riders are additional covers that considerably enhance the benefits of term insurance in India in various ways.
You can add different riders to your term plan by paying a little higher premium. Here is a list of the most popular ones:
- Critical illness
The unexpected diagnosis of a critical illness can seriously harm your financial plans. So, you can consider buying a critical illness rider to protect yourself and your dear ones from a monetary crunch. This rider provides you with a substantial lump sum if you are diagnosed with a severe disease included in the policy. Generally, the benefit is large enough to ensure that the medical bills cannot hamper your life goals. However, before buying this rider, check for the ailments included in the plan. It is essential to be aware of the policy terms before making a claim.
- Accidental death
When looking for online term insurance plans, find out if the insurer also the accidental death benefit rider. This is one rider that can help the dependents if an accident leads to the policyholder’s demise. If you have this rider, the insurer will pay the sum assured of the actual term plan along with an additional amount as a percentage of the death benefit. For instance, if you have a term life cover of INR 50 lakh and a rider that pays 10% of the sum assured, when nominees will make a successful claim, the insurer will pay them INR 55 lakh.
- Accidental total or partial disability
An accident can often lead to a permanent partial or total disability, hindering your life’s progress. The situation can end up burying you in medical bills and often reduces your ability to earn a regular income. Purchasing the rider is an effective way to tackle the situation. In case of such an accidental event, the insurer will pay you a fixed portion of your policy’s sum assured. However, keep in mind that the rider pays only in case of permanent partial or total disability.
- Waiver of premium
You have to make timely premium payments regularly to keep a term policy active. However, if an accidental disability or critical illness renders you incapable of continuing the payments, the term life insurance policy will lapse. So, you can consider purchasing a waiver of premium rider to guard yourself against that situation. If you have the rider, you can keep the term plan active even if you cannot pay the remaining premiums due to no income. With this rider, you ensure the financial security of family members in any circumstance.
- Income benefit for the family
If you feel that your nominees will not be able to manage the death benefit as a lump sum, this rider can help. If you have the income benefit rider, the insurance provider pays the sum assured to the nominees in monthly installments for ten years or longer. Usually, the monthly payment is 1% of the total sum assured of the rider.
With these riders, you can raise the online term insurance policy value and make sure that your family will not have to suffer due to a lack of funds in your absence.
