header-search-icon
Become an Advisor

Contact Us right-arrow-white

Login right-arrow-white

RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

Type and Benefits of Insurance Riders

down-arrow
Type and Benefits of Insurance Riders
November 05, 2023

Table of Content

 

An insurance rider is an add-on to the policy that an investor undertakes. It offers additional benefits apart from the usual benefits of the ongoing policy and is subjugated to certain terms and conditions. It is a means to maximize the benefits of life insurance plan to customize the policy to suit the investor's personal needs. A rider is a crucial tool to expand your life insurance coverage. A rider might have an additional charge associated with it in most cases over the standard cost of insurance while it is also the possibility that you would get a free rider. A rider can be added before or after the policy is issued. The ability to add a rider after a contract is signed depends on the specific rider rules, which may vary from company to company.

Various riders as per your requirement

  • Critical illness rider

Under this category the investor needs to pay an extra amount to cover herself / himself in case the person is diagnosed with any critical ailments such as cancer, heart attack and brain tumor. This rider acts as an income replacement plan and the amount received under the rider can be used to meet both medical and household expenses.

  • Disability rider

This rider is beneficial in case of permanent or temporary disability owing to an accident. Generally the insurer pays a certain sum assured for the next five or ten years in such situations. Also, all future premiums on the main insurance policy are waived off by the insurance company.

  • Accidental death benefit rider

All life insurance plans cover accidental death. However, when you buy an accidental death rider, the insurer pays double the sum assured to your nominee in case you die in an accident.

  • Term rider

This rider offers monthly income to nominee on death of life assured.

  • Waiver of premium rider

This rider ensures that your life insurance policy stays active even if you are unable to pay your premiums. The effect of this policy would be waiving off all future premiums but the continuation of the policy benefits.

Benefits of riders

By attaching a rider to a regular policy one can get the advantage of extra coverage to deal with household expenses, loan EMIs and for other financial liabilities apart from medical expenses. Investing in a rider is more affordable than investing in a regular insurance. Furthermore, riders also enjoy tax benefits as per the prevailing tax rules.

Related Articles:

Calculate Insurance Premium

Show Full Article
Hide Full Article

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Insurance Advisor Articles Insurance Advisor Articles

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

Why Is Insurance Necessary?

Why Is Insurance Necessary?

Learn the essentials of what is insurance, its types, benefits, and how it protects your finances. Get insights into life and general insurance policies today.

The Secret to Wealth? It’s These Small Steps! or Here’s How Small Wins Make You Rich

What Are Bond Funds? Meaning, Benefits, Types and How It Works

What are the key differences between Life and General Insurance?

Most of us are confused between life and general insurances. Knowing the difference between the two is important to invest in the right plan for yourself. HDFC Life in this article highlights the key differences between the two for your better understanding.

What are the key differences between Life and General Insurance?
How to Pick the Right Life Insurance Plan Previous
Advantages of Buying Insurance Early Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Popular Search

Popular Searches