Type and Benefits of Insurance Riders

 

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.

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