All About Riders in Term Insurance

1. All About Riders in Term Insurance Search. Compare. Buy

2. What is a rider? • In simple terms, a rider is an add-on cover that helps you enhance your insurance coverage at an additional cost. • Riders provide financial coverage over and above your primary insurance policy. • With your term insurance policy, you can opt for riders such as Accidental Death Benefit, Permanent and Partial Disability, Critical Illness, Waiver of Premium and Accelerated Death Benefit Rider

3. Facts about Riders in Term Insurance • Riders are useful in case of any unfortunate event in the life of a policyholder • The premium rate of a term insurance rider is less than the primary plan • The sum assured too is less than basic insurance cover

4. Accidental Death Rider: • This rider offers the beneficiary a supplementary coverage if a policyholder dies due to an accident. • Things to know: • Applicable only in event of an accident • Premium charged is low, generally 60-70% of the term plan • If policyholder dies within 3 months of the accident, then the beneficiary is entitled to receive the sum assured. • Recommended for those travelling frequently or working in hazardous conditions. • Note: The insured would receive the basic sum assured only if the cause of death is not an accident.

5. Permanent and Partial Disability: • This rider covers the policyholder if he/she is diagnosed with major critical illnesses such as heart attack, kidney failure, stroke, paralysis and others. • Things to know: • This rider compensates the policyholder with a pre-decided lump sum amount if he/she is diagnosed with a critical illness mentioned in the policy document. • The base term insurance plan may continue or terminate depending on the terms and conditions of the policy. • Note: The critical illnesses covered under this rider may differ from insurer to insurer

6. Critical Illness: • This rider enables a policyholder to receive the sum assured in case of permanent or partial disability. • Things to know: • The rider comes into force only if the disability is caused due to an accident • A certain percentage of sum assured is paid for 5-10 years • This rider ensures that your family has a stable income flow even while you’re permanently or partially disabled. • Note: The terms and conditions of the rider differs from insurer to insurer

7. Waiver of Premium Rider: • If the policyholder is unable to pay premium due to death or disability during the term of the policy, then this rider waives of all the future premiums that are to be paid by him. • Things to know: • The policy remains active, even if the premiums are waived off • Recommended where proposer and life insured are different or for parents insuring their children.

8. Income Benefit Rider: • This rider lets your family enjoy a steady additional income flow along with the sum assured offered with your basic term plan. • Things to know: • Your beneficiary enjoys a supplementary income for the next 5 to 10 years • This rider is more suitable for individuals who are the sole bread winners of the family

9. Accelerated Death Benefit Rider: • This rider allows you to receive a part of your sum assured (coverage) while you are critically ill. It helps you get an advance payment for the treatment of your illness. • Things to know: • The sum assured is paid in advance to compensate for the medical treatment and associated costs. • Financially helpful for you family to compensate the costs of your treatment

10. Conclusion: • With riders, you can be assured about boosting your basic term insurance plan. Thus, ensuring a healthy financial future for you and your family. • Recommended Read: The all-in one guide for term insurance riders • Discover term insurance riders. Get quotes from Coverfox.com Search. Compare. Buy