5 min read
Updated on Apr 26, 2023
At a basic level, having these riders as part of your term insurance plan makes sure that you enjoy a much better level of protection than you would otherwise get. This is perhaps the most important reason why they should be part of the coverage as such. This way, you can keep your near and dear ones safe from some more hazards depending on the kind of riders that you have opted for. There is nothing to deny that your death could cause your family financial difficulties the likes of which they may not have experienced so far.
This is especially when you are the sole breadwinner. However, the same can also be said of the likes of disabilities that happen because of accidents, and illnesses that threaten your life and cost a lot of money for treatment. They are just as devastating, if not more. This is where you need proper term riders to deal with the financial implications of the same. So, by adding these riders to your life insurance policy you can surely add plenty of teeth to the coverage that it is otherwise providing you with.
When you add riders to your term insurance plan you add to the protection pool.
Let us say that your term insurance policy provides you with coverage of one crore rupees. You can easily add a critical illness rider in life insurance that offers you a coverage of 25 lakh rupees and increase the financial protection that you have in this case. This is an important benefit of these riders when you come to think of it. This is evident in cases such as accidental deaths where the deceased may have been hospitalized and treated for a long time before they died.
In that case, the ones who survived the deceased would need more than the payout that they would get from the death claim so that they can take care of the expenses or at least get compensated for the same. If you know the term rider meaning you would know how useful such financial tools can prove to be.
A lot in this case though depends on the product that you have chosen and the insurer that you have bought it from. For example, some insurers offer you the option of child support as part of their riders.
So, if you know what a rider is you would know that such a rider would also take care of the financial support that your child needs in your absence apart from offering your family the sum assured that is guaranteed by the policy in case of any unfortunate event that is covered by the same.
Let us say that you became disabled because of an accident or suffering from a critical illness. Now if you have chosen a rider to cover such eventualities you would get financial assistance when you need it from them.
Usually, in such cases, your ability to earn a livelihood is compromised and this is where these term insurance riders can prove to be as useful as they are. However, a consequence of such financial help is that you tend to become dependent on the money that you are getting from your insurers for meeting your various needs such as your household budget as well as treatment. The situation is further exacerbated when you have to pay insurance for the same. However, does this mean that you should stop the policy?
The answer to this question is no. The best way to go about here is to go for term insurance ridersthat allow the premiums to be waived off in such situations. This way, you do not have to bear the burden of paying the premium of your term policy.
The thing with these riders is that they work alongside the basic cover. However, in case you buy a critical or accident insurance cover separately you would have to pay a higher premium. At the same time, you would have to manage several policies at once.
So, if you do not have such term insurance riders in your policy you would have to deal with these hassles. Apart from that, you would also not get the combined benefits that you would normally get if these were part of your coverage. As an example, it can be cited that if you do not have the critical or accidental rider in your policy it is unlikely that you would get the benefit of the premiums being waived off in cases such as critical illnesses or accidental disabilities.
The main reason for this is the fact that it is these claims that function as the source of such benefit. You need to have these riders in your policy so that you can get the said benefit. So, keep these things in mind while you are in the process of deciding on term insurance riders.
Read More: Most Common Term Insurance Policy Riders
This is also one of the biggest benefits of the riders that we are talking about over here. By opting for riders you can make sure that you are getting exactly the kind of protection that you need from your term insurance policy.
Thus with the right kind of term insurance riders, you can get the protection that is otherwise not afforded by your regular plan.
When you have such coverage in-built in your term insurance plan you do not have to go looking for other plans where you might get such coverage. This way, you do not have to pay the extra money that you otherwise would have to do in these cases. The premiums that you would have to pay here are marginal compared to what you would have to if you bought them separately.
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