A term plan is one of the most important and cost-effective insurance products. The plan is designed to provide financial security to the family members in the case of your sudden demise. You pay a certain amount of premium to the insurer for the policy and you receive a life cover on the same. However, to get additional protection, there is an option of choosing different types of riders.
Term insurance riders are add-ons that are attached to the main policy. It enhances the value and the functionality of the policy and can be purchased in addition to the policy. Riders can help you customize a policy as per your needs for an additional premium amount. It only comes into play on an occurrence of a specific event. It is important to choose the right type of rider for the policy in order to enjoy additional benefits.
Types of riders
You may consider the below-mentioned riders for your term insurance.
Accidental death rider
With a simple term plan, you get normal death benefits but an accidental death rider will give you a supplementary sum assured in case the policyholder passes away because of an accident.
Waiver of premium rider
This is a highly cost-effective term insurance rider where your insurance plan remains active even if you are not able to pay the premium for some reason. It will come into existence when you lose monthly income due to an unexpected event. It can also be availed of during a critical illness when you fail to pay the premium amount. It will take off any financial burden and the premium will be waived until the tenure of the term plan.
Critical illness rider
This rider covers all the critical illnesses like heart attack, cancer, coronary artery bypass, kidney failure, and paralysis. Such diseases can put a strain on your finances and a rider can help you here. Availing of this rider will cover the cost of illness in the form of hospitalization and non-hospitalization expenses. At the time of diagnosis, this rider will give you a lump sum benefit and in case of death, the plan benefit is given to the nominees. When you buy term insurance, give special consideration to this rider.
Income benefit rider
When there is a sudden death of the breadwinner of the family, it becomes difficult for the dependents to replace the income. With this rider, the family will receive a regular income for a specific number of years. It will provide an amount equal to the monthly income of the policyholder and the dependents get the income for about five to ten years with the total sum assured. It is ideal for salaried individuals.
Consider the above-mentioned riders and make the most of your insurance policy. A rider will give you an additional benefit at a small additional cost. Whenever you buy term insurance, understand the riders and customize your policy according to your needs.