Life Insurance Riders - All you need to know - Greyfont

Life Insurance Riders - All you need to know


We all know that life insurance offers a financial shield to our families in case of untoward situations. However, a basic life insurance may not be able to fulfill all your requirements. Therefore, life insurance riders enhance the basic life insurance policy at just an additional premium. There are so many life insurance add-ons or riders available that every life insurer may offer. You can certainly buy those as per your requirement and ask your life insurer to customize your plan accordingly.


What exactly are life insurance riders?

As the name implies, life insurance riders are add-ons that offer an extra touch of benefit over your basic policy. These riders come to our rescue whenever a specific event occurs. The risk coverage that they provide is above the basic protection that any base policy offers at an additional cost apart from the life insurance premium.


Why opt for Life Insurance riders

  • Extra risk coverage: Riders offer an extra shield of protection. Say for instance, if you buy a disability rider it will take care of the ongoing expenses that are additional to undergo the medical treatment
  • Tax benefit: Just the way your basic life insurance policy offers you tax benefit, the additional premium that you pay for these riders also offers you a tax benefit
  • Tailor-made: Riders can enhance your basic insurance policy customizing your plan as per your needs. You may add different types of riders such to your endowment plan, term plan or even ULIP, etc.
  • Pocket-friendly: Rides are definitely affordable that buying a separate specific plan altogether. Say for instance, it would make sense to buy accidental death cover as a rider rather than opting for it as a separate plan.


However, remember that these riders offered vary from one insurer to another life insurer. You can compare life insurance riders of one life insurance Company to another.


List of some useful and popularlife insurance riders

  • Accidental death benefit rider: This type of rider offers an extra protection in case of death of the insured.Every insurer would specify what ‘types of accidents’ are covered under the terms and conditions of the policy document. In case of an accidental death, the basic sum assured as well as the rider sum assured amount would be paid off.
  • Waiver of premium rider: This rider’s offers waiver on the life insurance premium payment, for different reasons such as disability or death of the proposer. The policy however continues to stay active or in force till the maturity date of the policy even if the policyholder fails to make the premium payment due to these specific reasons.
  • Income benefit rider: This rider is not offered by all the life insurance companies. It actually works like income generation plan for the nominee in case of the death of the policyholder’s.  Here, the income is paid per year for duration of 5 years or 10 years. This rider offers benefit over and above the regular sum assured.
  • Critical illness rider: In case you get diagnosed with any critical illness as mentioned in the policy document during the term of the policy, this rider would be paid off. Critical illnesses such as paralysis, heart attack, kidney diseases, stroke are usually covered by most of the life insurance companies.


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