What Are Riders In A Life Insurance Policy?

Choosing the perfect rider for your life insurance policy

Life is unpredictable. While you might be young with excellent health and a steady income, you never know what might happen in the future. Buying a life insurance plan is one of the most effective ways to provide a safety net to your beloved family members in case of your unfortunate demise.

Life Insurance Riders for Added Protection

In a way, a life insurance plan helps you prepare for death. While death is the biggest catastrophe in life, many other things can go wrong. For instance, what if an accident results in permanent disability due to which you cannot work anymore? What if you suffer from a critical illness that requires expensive treatment?

While we never really think about such catastrophes, the reality is that anyone can go through such events. Riders that can be purchased with life insurance plans help you protect yourself against such eventualities. Here is a detailed explanation of what these riders are-

What are Life Insurance Riders?

Riders are add-ons that offer supplementary coverage over and above the basic scope of the policy. They help extend or even amend the scope of a life insurance plan at an additional cost. While a policyholder is required to pay slightly higher premiums for purchasing these add-ons, they significantly boost the scope of any policy. 

To better meet the needs of the customers, top insurers in the country now offer many different types of riders to help them prepare for various contingencies. 

What are the Popular Life Insurance Riders?

Here is a list of some of the most popular riders that you can consider with your life insurance plan-

  • Accidental Death Benefit Rider

In case if the policyholder’s death is caused due to an accident, the accidental death benefit rider offers an added death benefit. With this rider, the policy beneficiary will receive an additional amount, over and above the sum assured.

  • Critical Illness Rider

The critical illness rider offers financial protection against severe health problems like cancer, kidney failure, heart diseases, etc. If the policyholder is diagnosed with any of the pre-specified critical illnesses, he/she is entitled to receive financial assistance from the insurer. 

  • Accidental Permanent Disability Rider

If the policyholder suffers from total and permanent disability due to an accident, the accidental permanent disability rider will provide financial assistance. In most cases, the coverage under this rider is a certain percentage of the basic sum assured and is paid to the policyholder over a period of 3-5 years. 

Should You Purchase Life Insurance Riders?

The riders help in significantly extending the scope of the policy at a minimal cost. Moreover, they allow you to customize your life insurance policy so that the policy effectively meets your insurance requirements and expectations. 

Last but not least, as these riders are also a type of supplementary insurance coverage, the additional premiums you pay for them are also eligible for tax deduction under Section 80C up to the prescribed limit. 

Amplify the Benefits of Life Insurance with Riders

Living a confident and financially stable life is all about keeping yourself prepared for the unexpected. At a minimal cost, life insurance riders offer added protection against a wide range of catastrophes. The add-ons are an excellent way to extend the scope of your policy and provide an extra layer of safety to your loved ones. 

If you are planning to purchase life insurance, check out the riders or add-ons offered by the insurer to select ones you believe are ideal for you. Even if you’ve already purchased life insurance, you can still buy these riders from your insurer and enjoy the additional protection they offer. 

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