Riders are additional coverage benefits that can be added to the insurance policy to enhance the insurance coverage by paying a small amount of money in addition to the premium amount paid. Life insurance policies provide a wide range of riders to the insured. By understanding the diverse types of life insurance riders, and the benefits offered, the insured can decide which category of rider can be included with the life insurance base plan.
What are the different Types of Life Insurance Riders in India?
The top insurance providers in India provide excellent life insurance riders or add-on covers through reliable life insurance plans. Life insurance policy riders ensure complete financial protection to the dependents in case of an unexpected event such as disability or sudden demise of the insured. Here are the different types of riders in Insurance that help to customize and improvise the insurance policy coverage.
- Critical Illness Rider- The category of life insurance rider provides additional coverage or a sum of money to treat critical illness or life-threatening disease. The coverage includes household and medical expenses.
- Term Rider- The term rider provides additional coverage benefits to the insured for a specific term or period to meet the expenses such as repayment of the mortgage, paying the cost incurred for child education, and much more.
- Disability Rider- The category of life insurance rider provides coverage to the insured in the event of permanent or temporary disability. Regular income will be provided to meet the cost incurred for treatment or rehabilitation.
- Accidental Death Rider- The type of life insurance rider provides additional coverage benefits to the dependants in the event of sudden or accidental death of the insured.
- Income Benefit Rider- By opting for the income benefit rider, the dependent receives regular income for a specific period to handle critical illness, permanent disability, or the demise of the insured.
- Family Income Benefit Rider- The category of life insurance rider benefits the family members. By adding the family income benefit rider, the dependents or family members will receive a monthly income to handle expenses in the absence or disability of the insured.
- Guaranteed Insurability Rider- The category of life insurance rider permits the policyholder to buy additional coverage benefits without providing evidence of insurability and proof of medical examination.
- Long-term Care Rider- The life insurance rider provides coverage benefits to the insured to obtain long-term care services such as nursing care or health care at home.
- Waiver of Premium Rider- The rider can waive off the premium payments. The policy coverage remains active even if the policyholder is unable to pay the premium due to an unexpected incident causing disability or demise. The dependants will receive the rider benefits in the absence of the insured.
- Child Term Rider- The child term rider provides coverage benefits to the insured parents in the event of the sudden death or demise of the child. The expenses covered include medical costs, student loans, funeral costs, and much more.
- Return of Premium The return of premium rider returns the life insurance premium amount paid to purchase the rider. The policyholder will receive the amount at the end of the policy term.
What are the Benefits of a Life Insurance rider?
Adding a rider with the life insurance plan is affordable and helps to increase the insurance coverage eliminating the necessity to purchase a new insurance policy. Life insurance riders help to customize the insurance policy to meet the financial needs of the insured. In addition to the coverage, tax benefits are provided for every payment towards life insurance add-ons by following the section D regulation of the Income Tax Regulatory Act. Life insurance riders are customizable which means that the insured can add or remove the rider at any time if needed.
Reasons to add Life Insurance Riders to your plan
The top life insurance providers in India recommend adding life insurance policy riders to the insurance plan. Here are the reasons why it is essential to add riders to the life insurance policy plan.
- By adding a life insurance add-on, the insured can get enhanced coverage options.
- The life insurance riders provide complete financial protection against loss of income in the event of critical illness or disability.
- Life insurance riders can be customized easily.
- Riders eliminate the need to buy a separate life insurance policy plan.
- Life insurance policy riders ensure complete financial protection to the dependants in the event of sudden death of the insured.
- Life insurance policy riders are affordable and can be managed easily.
How to Buy a Life Insurance Policy Rider?
The life insurance policyholders can add riders to the existing insurance plan by paying an additional premium amount. After adding the add-on cover, he or she can avail the additional coverage benefits to meet the financial emergencies in the event of critical illness, disability, and loss of income.
Life insurance protects your loved ones by providing financial protection in your absence. Adding the insurance riders to the life insurance policy base plan is the wise choice to enhance the life insurance policy coverage and obtain additional coverage benefits. The category of life insurance rider can be chosen considering the cost, features, and financial needs of the policyholder.
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