Life is an uncertain journey in which you cannot predict the next step. However, you can always plan for what happens to your loved ones in your absence by having a safety net to protect them from any financial tragedy. This is where a term insurance policy comes into play.

However, a basic term insurance policy may not be sufficient to take care of your family’s needs after your unfortunate demise. So, it’s highly advised that you purchase term insurance riders, the add-on benefits, along with a basic term insurance policy to enhance its coverage and help you ride smoothly over any unforeseen circumstances.

In this article, we will explain the benefits and the different types of riders in term insurance.

Imagine you bought a new phone you love to use, but you’re worried that if you accidentally drop it, the phone might break or get damaged. So, you get a phone cover to keep your phone safe. This is like a basic insurance policy.

Later, you also decide to protect the screen with an additional screen guard to provide extra protection. This additional cover is like a term insurance rider that will provide additional benefit to your family in any situation.

So, while a basic term insurance policy will offer death benefits to the policyholder, adding term insurance riders will enhance the policy’s coverage by providing you additional benefits.

Term insurance riders provide flexibility in terms of the premium amount and duration of the policy as the amount of these riders are added to the base premium of the term insurance policy. Therefore, opting for riders increases the policy’s coverage while simultaneously allowing you to customise it per your needs.

Accidents are unpredictable, and anyone can be a victim of them. In such financially traumatic situations, the accidental death benefit rider pays the supplementary sum assured to the beneficiary in case of the policyholder’s untimely death due to an accident. The sum assured is paid within 120-180 days from the date of the accident.

However, this rider does not provide benefits in case of death due to suicide, self-inflicted injuries, substance abuse/overdose, and participation in riots or rebellion.

Who Should Opt for Accidental Death Benefit Rider?

Who Should Opt For Accidental Total and Permanent Disability Rider?

Critical Illness Rider protects financially if the policyholder has been diagnosed with one of the critical illnesses pre-specified in the rider and covers the high medical costs of the treatment, up to the amount of rider chosen.

It compensates the loss of earnings with a lump sum amount. The rider is active till the term insurance policy duration although its benefits can be claimed only once.

Who Should Opt for Critical Illness Rider?

If you have purchased the Terminal Illness Rider in your policy and are later diagnosed with a terminal illness wherein short life expectancy is medically confirmed, then this rider provides you with a part of the sum assured to pay for the medical expenses of the illness. The remaining amount is paid to the family after you pass away.

It is a low-cost rider that helps your family during your last days and after you pass away.

Who Should Opt for Terminal Illness Rider?

Waiver of Premium Rider in term insurance waves off the future premiums to provide financial respite to the policyholder who may be suffering from a disability or loss of income and cannot pay future premiums.

If you become permanently disabled, you won’t have to pay any more premiums for your term insurance policy. However, your policy will stay active, and the coverage amount will remain the same until the policy ends.

If you are diagnosed with a critical illness listed in your policy, you won’t have to pay any more premiums. Just like the disability rider, your policy will continue to be active, and the coverage amount will stay the same until the policy ends.

This ensures that the policy continues till maturity even in case of non-payment of premium, thus reducing your financial worries.

However, this term insurance rider can only be availed of if the policyholder has been disabled for six months or more or has been diagnosed with any life-threatening illnesses.

Who Should Opt for Waiver of Premium Rider?

Who Should Opt for HospiCare Rider?

Who Should Opt for Income Benefit Rider?

1. More Economical

Term insurance riders are an economical way to enhance the policy's coverage. By paying a minimal additional premium, a rider can get additional significant benefits and provide support in situations where additional funds might be needed.

For example, if you get a critical illness rider, you will receive a cash payout if you are diagnosed with a serious illness, which can be very helpful with medical bills.

2. Comprehensive Protection

3. Saves Money

4. Personalized for You

5. Customizable Coverage

6. Extra Safety Net

7. Tax Perks

8. Easy Management

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Note down these key things to note about term insurance rider before you add one to your basic term policy:

• You can choose term insurance riders to customise your policy.
• Check the terms and conditions associated with different term plan riders before adding them to the base policy.
• You can add the term plan riders when you buy the policy, while some insurance companies allow you to add riders at the time of policy renewal.
• Also, you can add the rider for less or same duration as the base policy but cannot exceed it.

Therefore, buying term riders for an insurance policy is entirely your choice. Purchasing a rider would be highly beneficial if you want enhanced coverage over your base term insurance policy with the same insurance company.