How to increase coverage with term and life insurance riders

A traditional term insurance plan serves as one of the best hedges against life's uncertainties. A traditional life insurance policy entitles the policy holder's nominee(s) to receive the main plan benefit i.e. the sum assured in the event of policy-holder's demise during the plan term. In case the policy holder survives the term, she/he is entitled to receive the maturity benefits as well. However, a traditional term insurance plan does not offer any entitlement to the maturity benefits but simply offers the death benefit to the nominee(s) in the event of the policy holder's demise during the plan term. In addition to the primary plan features, a term insurance plan may include supplementary riders that provide additional coverage.

In return of a higher rate of payable premium, a policy holder can avail of these riders.

Following are the important additional riders for term insurance with their relevant benefits:

1. Critical illness rider:

   This is a rider that entitles the policy holder to receive the extra coverage in case of incidence of any critical illness. Therefore, a critical illness rider serves as an additional protection for financial security in the event of diagnosis of any critical illness. Every insurance company has a pre-determined list of such ailments against which coverage can be obtained. In the case of such an incident, the policyholder's nominee(s) will get extra benefits.

2. Accidental Death benefit:

   This rider entitles the policy holder's nominee(s) to receive additional benefits in addition to the sum assured as per the main plan, in the event of the policy holder's demise due to an accidental occurrence.

3. Waiver of premium:

   This is a very important and beneficial rider that contains the feature that entitles the policy holder and her/his nominee (s) to receive the insurance cover without having to pay the premiums in the event of a certain pre-defined eventuality or condition. Hence, the cover continues to be in effect but the balance premiums are waived off.

4. Accidental disability rider:

   This is an important rider that entitles the policy holder's nominee(s) to receive additional benefits in addition to the sum assured as per the main plan, in the event of the policy holder's disability due to an accidental occurrence.

5. Income rider:

   This is the rider that entitles the policy holder's nominee(s) to receive a particular sum as a fixed income in the event of the policy holder's demise during the plan term.

6. Accelerated death benefit rider:

   This rider comes with the feature that entitles the policy holder's nominee (s) to receive the additional benefit, in addition to the main plan benefits in the event of the policy holder's demise due to a pre-defined or pre-existing condition.

HDFC Life offers several Term Insurance Plans that seek to secure your family's future at all times and during all stages of life.

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