Last updated on December 20, 2019
When you are investing in something, you love getting your hands on all those extra perks and discounts. But why doesn’t anyone do the same while buying life insurance? The additional benefits offered while purchasing a policy is a rider. Insurance policies help you secure your future but life insurance riderssafeguard you from the uncertainties of life. So let’s run through what is a rider and the different types made available by your insurer:
What Are Riders in Life Insurance?
A rider is an additional perk that can be chosen to be added to your life insurance. These add-ons help increase your coverage because basic life insurance policies provide a life cover for certain instances of death. Life insurance riders not only enable you to enhance your life cover but also provide other kinds of benefits. The various types of riders in term insurance are a critical illness rider benefit, permanent disability rider benefit, accidental death rider benefit and many more.
Critical Illness Rider Benefit
This type of rider covers critical illnesses like heart attack, cancer, renal failure, coronary artery bypass, paralysis, major organ transplant, stroke, coma, etc.
Why You Should Consider This Rider Benefit?
The type of coverage given for a critical illness rider depends on your insurer. Many companies pay out the sum assured immediately after the diagnosis of the illness. Though a major disorder won’t lead to death, it can lead to a loss of job due to frequent checkups, rest and treatments. Also, if you are the sole earner in your family, the steady income will stop and give rise to financial instability. You should check the list of major illnesses, thoroughly before you opt for this type of rider.
Accidental Death Rider Benefit
Accidental death rider benefit covers death caused due to an accident, providing your beneficiary with the sum assured in the event of a loss.
Why You Should Consider This Rider Benefit?
The cause of death cannot be predicted, hence this type of rider gives you the extra coverage in case you were to pass away due to an accident. You can opt for it if you drive or ride to work and travel through public or private transport very often. The terms and conditions for such a rider benefit should be checked for limitations as accidental death may not lead to death on the spot. Provisions for the duration of accidental death should be reviewed.
Waiver of Premium Rider Benefit
As the name suggests, a waiver of premium rider benefit helps you during difficulties by waiving off future premiums.
Why You Should Consider This Rider Benefit?
In case you lose your job or get into a major accident, you could suffer a loss of income. Not paying your premiums for a long time can cause the policy to get terminated. To avoid this, a waiver of premium aids in paying off the remaining premiums to keep the policy valid.
Permanent Disability Rider Benefit
Permanent disability rider benefit enables you to secure your future from incidents that cause permanent disability due to an unfortunate accident.
Why You Should Consider This Rider Benefit?
By opting for this rider, you will receive a basic sum from your insurer. The amount that will be provided varies based on the type of term insurance policy you have bought. Many choose to buy this type of rider along with accidental death rider benefit. It is advised to check the terms and conditions regarding the disability covered by your insurer.
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