The primary reason for the formulation of term insurance plans can be your family’s financial protection. Although term plans aim at the safety of your loved ones, there can be times when they might fail to offer security under specific circumstances, such as loss of income, accidental death, temporary or permanent disability, etc. To cover such scenarios, a term insurance plan can provide you with the top five types of riders mentioned below:
Accidental death rider
A lot of people have largely recognized the uncertainties in life. According to a report, 86% of people in India feel that life is uncertain. The high uncertainty rate can give rise to the total number of accidents. Since accidents can greatly impact your medical expenses, you should buy term insurance along with an accidental death rider. If anything happens to you during an accident, your loved ones can receive a sum assured value with an additional amount from the unexpected death rider. For instance, if you have chosen a sum assured value of Rs. 35 Lakh and the payout under unintentional death rider is Rs. 15 Lakh; your nominees can receive an overall amount of Rs. 50 Lakh after your demise.
Premium is essentially paid in return for the coverage. Paying regular compensation can ensure the continuous provision of term insurance benefits to you. However, circumstances such as loss of income, death, and so on might make it difficult to make the premium payment. Suppose you are struggling with paying the premium due to an unfortunate event. In that case, you should avail of a waiver of premium riders, which can waive the premium completely while your term policy remains functional.
Critical illness rider
As you age, the chances of being prone to critical illnesses, such as cancer, stroke, kidney failure, and so on, can increase. If you are diagnosed with a critical illness, you might require adequate funds to treat your health condition. The total number of diseases covered under essential riders of illness can depend on insurers to others. Therefore, you should carefully review the inclusions and exclusions of a term insurance policy before you avail of a critical illness rider to meet your medical expenses.
Physical disability rider
A physical disability rider can be beneficial during accidents. When you meet with an accident, you can be either permanently or temporarily disabled. For instance, you might lose a limb, an eye, an arm, or any part of your body. Under such a scenario, the physical disability rider can prove beneficial. While many insurance companies can cover your temporary disability, the rest can waive the premium to ensure you continue receiving term insurance benefits when you cannot pay the premium amount.
Income rider
As the name suggests, an income rider can act as a replacement that provides a regular flow of income every month for a stipulated period. At the time of purchase, you should choose the duration. However, the income riders can be operational only after your demise. Your family members can benefit from the income rider to maintain their financial well-being in your absence.
In a nutshell, riders can be an essential part of your term insurance plans. However, before purchasing riders, you should understand the term insurance in detail from your insurer—research the different term plan options and the variety of riders available under it. While buying term insurance, selecting the right term plan and the relevant riders to safeguard your loved ones’ needs can be crucial.
