What Are Riders on Life Insurance?
One of the best ways to boost the plan’s advantages is by using life insurance riders. Life insurance riders are optional extras available for a low premium cost and enable one to maintain financial security even in the terrible event of an emergency.
There are several different life insurance riders available from different life insurance carriers. The base life insurance plan and any additional conditions should be considered while selecting a life insurance rider.
A life insurance calculator is a tool you may use online to determine the amount of coverage required based on your needs.
Life Insurance Riders: Types
The insured can receive a variety of benefits from different riders. The following are examples of common riders included in life insurance policies:
- Accidental Death Benefit Rider: In the event of the life assured’s accidental death, the Accidental Death Benefit Rider provides the nominee with the sum assured and a rider benefit. Accidents frequently do not cause the life assured to pass away immediately; in these instances, the insurance provider gives a window of time after the accident happens to provide the promised protection. For instance, the nominee will get a sum promised amount in the terrible event that the life assured passes away within 120–180 days of the accident.
- Accidental Total and Permanent Disability Rider: With the Accidental Total and Permanent Disability rider, the insurance provider offers a benefit to the life assured in the event that the life assured experiences total and permanent disability as a result of an accident, which makes it impossible for the life assured to work and pay premiums as required. This rider frequently accompanies the Accidental Death Benefit rider.
- Critical Illness Rider: The Critical Illness Rider is the most popular rider because it covers serious critical illnesses such as organ failure, cancer, tumours, and heart disorders. Before acquiring this rider, please review the terms and conditions of each insurance provider for a list of critical illnesses. It is suggested that you examine the list to see if any critical illnesses for which you have received a diagnosis are included. When a life-insured person is found to have one of the serious illnesses listed, insurance firms offer a critical illness rider benefit.
- Waiver of Premium Rider: In the event that the life assured experiences an accident-related disability that prevents them from paying future premiums for their insurance policy, the waiver of premium rider waives all future payable premiums. Even after receiving the waiver of premium rider benefit, this rider enables the life assured to utilise the insurance benefit. The Accidental Total and Permanent Disability rider or the Critical Illness rider typically includes the waiver of the premium rider.
- Accelerated Death Benefit Rider: Under this rider, the insurance provider will advance a portion of the sum promised if the life assured is determined to have a terminal disease. The life-assured’s treatment may be paid for with the money due. The remaining sum promised will be given to the life assured’s family in the event that they pass away owing to a terminal illness such as cancer, heart disease, kidney failure, paralysis, etc., within the policy term.
- Term Rider: With this rider, the nominee will be given a lump sum payment or a monthly income if the policyholder or insured passes away in any circumstance. The amount of the rider benefit may be equal to the life insurance policy’s base plan coverage or it may be a previously decided sum that is specified in the policy.
- Hospital Cash Rider: Under this rider, if the policyholder or insured must be admitted to the hospital for treatment, a fixed amount of rider benefit will be given to the policyholder or insured based on the cost of the hospital stay per day.
- Surgical Care Rider: Under the Surgical Care rider, the insurance provider will pay a lump sum as a rider benefit if the policyholder or insured must undergo an unavoidable medical procedure in India. With each type of procedure, the rider’s benefit is different.
- Income Benefit Rider: Under the income benefit rider, in the unfortunate event that the life assured passes away during the policy term, the family members of the life assured would be given a pre-determined number of monthly instalments equivalent to the monthly income of the life assured. This rider would enable the life assured to make sure that, even if they are not present, their family members lead healthy and happier lives.
A life insurance calculator is an easy-to-use tool to check the amount of premium you would have to pay.