Learn About Term Insurance Riders Before Comparing Any Plan

Term insurance is a basic type of life insurance that offers a lump sum benefit to the policyholder’s family. This benefit is called the Death Benefit and is availed on the death of the insured individual if the coverage period is still applicable. As term insurance doesn’t have any frills, it is very affordable. However, insurance providers offer insurance riders that provide supplementary benefits to the policyholders.

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7 Term Insurance Riders One Should Know When Comparing Life Insurance Plans

Here are some term insurance riders you should know when you are going to compare insurance plans:

1. Critical illness benefit rider:

This rider offers a lump sum amount when the insured person is diagnosed with a critical illness. The caveat is that the critical illness must be listed in the policy document. The illnesses listed are usually stroke, paralysis, heart attack, and so on. Upon diagnosis of the critical illness, the policy may terminate or continue as per its terms and conditions.

2. Accidental disability benefit rider:

With this rider, the insured individual will receive an additional amount of money on the unfortunate event of an accident that leaves them partially or permanently disabled. When you do a term insurance comparison, you will find that many plans pay the insured person for 5 to 10 years after the initial accident. 

3. Accidental death benefit rider:

This rider offers an additional sum assured if the insured individual passes away from an accident. To avail this benefit, you must pay an additional premium. If the death of the insured individual occurs does not take place due to an accident, the beneficiaries will receive the basic sum assured.

4. Accelerated death benefit rider:  

This benefit can be availed if the insured person suffers from a terminal illness such as kidney failure, lung failure, cancer, and so on. The insured individual and their family often must pay high medical bills due to the treatment for the illness. When you avail of this rider, you will receive a part of this benefit in advance which helps in the payment of the medical expenses. 

5. Income benefit rider:

Look out for this useful rider when doing a term insurance comparison. The beneficiaries receive an additional income on the unfortunate demise of the insured individual. This income is given to the beneficiaries every year along with the basic sum assured for a period of 5 to 10 years.

6. Waiver of premium rider:

This is another useful rider that ensures that the insured individual’s policy does not get terminated in case he or she is unable to pay the premiums due to any reason.

7. Child support benefit rider:

With this rider, an additional amount is paid upon the death of the parents (the insured) of the child. This rider ensures that the child is taken care of financially and that their future is not compromised due to the death of the parent. 

In conclusion

Your term insurance comparison should include an overview of the riders available. This way you will make an informed choice and come to the best conclusion when you compare insurance plans.

Also Read: Standalone Policy vs. Critical Illness Rider – What to Choose?

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