For those who just know about the life insurance policies and doesn’t understand what insurance riders are all about, let me tell you what exactly it means. Riders are thatan amendment, attachment or endorsement which are made in a term insurance policy to provide the extra or rather say supplementary coverage at an extra but little cost. In other words, it is apt to say that an insurance rider strengthens a life insurance policyby providing additional benefits. When we say additional benefits, these benefits are in addition to the core offerings of a death benefit.
Also, it’s worth mentioning here that most of the life insurance plans come with riders and their conditions as well as costs vary as per the term plan and premium of the policy. Those who want to buy a life insurance plan anytime soon should also know that some of the riders come as a part of the policy while others need to be purchased separately by paying extra. This remains true to most of the life insurance companies.
Life insurance riders are different for different types of life insurance policies. These riders are designed as per the policies to provide comprehensive coverage to the policy buyers to safeguard their interests in an unlikely situation. There are different kinds of riders that include, but surely not confined to, Disability rider, Term rider, Accidental death benefit rider, Critical illness rider and Waiver of premium rider. To understand these premiums in detail, let’s discuss them one by one.
In your life insurance plan, the critical illness rider will make you entitled to receive financial benefits if you are diagnosed with a critical illness. This will help you save money, which the treatment for a critical illness would have devoured otherwise.
As the very name indicates, the policyholder receives benefits in case they will, unfortunately, be afflicted with a disability owing to any reason. This rider is a differentiator for the disability-inflicted policyholder who might not be able to earn as much as s/he did before the condition.
The name of this insurance rider again is self-explanatory. The accidental death benefit rider is instrumental in benefiting the policyholder in an unfortunate event of an accident, which leads to death.
Term rider in life insurance of Indiais added to offer monthly income to the nominee on the death of the policyholder. This will help policyholders breathe a sigh of relief about their family members, nominees in particular, not facing acute financial problems.
This rider gives the policyholder freedom to not pay future premiums of the policy in an event of an accident or mishap as defined by the rider yet reap the benefits of life insurance.
A rider is basically an add-on which covers the areas that aren’t the part of a general insurance policy and offers benefits over and above the policy. It’s one of the easy ways to maximize benefits on your life insurance policy.
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