The primary reason for the formulation of term insurance plans can be the financial protection of your family. Although term plans aim at the safety of your loved ones, there can be times when it might fail to offer security under specific circumstances, such as loss of income, accidental death, temporary or permanent disability, and so forth. 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 have a high impact on 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 accidental death rider. For instance, if you have chosen a sum assured value of Rs. 35 Lakh and the payout under accidental death rider is Rs. 15 Lakh; your nominees can receive an overall amount of Rs. 50 Lakh after your demise.
Waiver of premium rider
Premium is essentially paid in return for the coverage. The payment of a regular premium can ensure the continuous provision of term insurance benefits to you. However, there can be circumstances, such as loss of income, death, and so on, that might make it difficult for you to make the premium payment. If you are struggling with the payment of the premium amount due to an unfortunate event, you should avail of a waiver of premium riders, which can waive the premium off completely while your term policy remains functional.
Critical illness rider
As you grow old, 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 critical illness riders can depend from insurers to others. Therefore, you should go through the inclusions and exclusions of a term insurance policy carefully before you avail 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 either 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 off to ensure that you continue to receive term insurance benefits when you cannot pay the premium amount.
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, it can be crucial to select the right term plan and the relevant riders to safeguard your loved ones’ needs.