Riders are add ons or additional benefits which you can opt for along with your current life insurance policy at affordable rates.
Life insurance companies offer a number of riders that offer
value to the policy holder.
A rider is a provision typically added through our endorsement,
which then becomes part of the contract.
Riders can be a way through which additional benefits can
be added to a standard life insurance contract. For e.g. accident cover,
disability cover, critical illness cover etc.
Policy holders can avail of Riders by paying additional
premium for the purpose.
DIFFERENT LIFE INSURANCE RIDERS
Waiver of premium: Even is a policy holder is unable to pay
the premium, it ensures that the policy holder’s life insurance stays active.
Critical illness: The policy holders pay an extra amount to
cover themselves in case of diagnosis of any critical illnesses mentioned in the
policy document. E.g. cancer, heart attack, brain tumor, etc.
Accidental death rider: All life insurance polices cover
accidental death, the insurer pays double the sum assured to your nominee
incase you die in an accident.
Permanent and partial disability: If a policy holder becomes
temporarily or permanently disabled due to an accident, the insurer pays a certain
sum assured for the next five or ten years. Also, all future premiums on the main
insurance policy may be waived off by the insurance company.
Income benefits rider: It offers a regular source of income
to the family in case of the demise of disability of the policy holder.
BENEFITS OF RIDERS
Extra Coverage: Comprehensive coverage can be enjoyed due
to rider to the main insurance policy. A critical illness rider pays a lump sum
amount which can be sued to deal with household expenses, loan, medical expenses,
etc.
Affordability: It is more affordable to buy a rider than an
entire policy. The riders differ according to the choice and need of policy and
policy holders.
Flexibility: Rider can be added to any of your insurance
policy – term, ULIP, endowment, whole life and you can customize your policy as
per your needs.
Tax benefits: There are tax benefits on insurance policies
as per the prevailing tax rules.
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