Six Riders for Term Insurance and Their Benefits
Riders are additional perks that can be combined with your life insurance plan to maximize the coverage. The insurance riders secure you during unfortunate circumstances like getting diagnosed with a major illness, disability or accidental death. A lump sum or a regular payout is given to the beneficiary to take care of the medical and the indirect expenses. These add-ons secure you from incidences that are not covered under your term policy. Here are six commonly bought riders along with term insurance and their benefits:
1. Accidental Death Rider
This rider can be combined with your base plan to protect your family in case of accidental death. The accidental death rider provides your beneficiary with a lump sum amount that can be used to replace your income and also pay for the indirect expenses of the family. With the help of this rider, your loved ones receive financial assistance and stability in your absence.
2. Critical Illness Rider
A critical illness rider pays a lump sum amount in case you are diagnosed with any of the illnesses covered under the plan. This lump sum amount can not only pay for your medical expenses but also replace your income and cover other indirect expenses. Kotak Life Insurance covers thirty-seven major illnesses such as brain tumor, Alzheimer’s Disease, permanent paralysis of limbs, Parkinson’s Disease, blindness, etc.
3. Permanent Disability Rider
This rider covers you in case of an accident that causes permanent disability. It makes you eligible for a regular payout where the sum assured is paid over a period of time. The regular payouts act as monthly income and provides for your family. You may combine this cover with the accidental death benefit rider if you were unable to work due to accidental disability.
4. Income Benefit Rider
Income benefit rider is recommended if you are the primary earning member of your family or make a considerable contribution towards the household. Your beneficiary receives additional income every year for a pre-specified period in case something were to happen to you. This benefit extends over and above the regular perks available under your basic term policy.
5. Waiver of Premium Rider
Waiver of premium rider protects you from unfortunate situations by waiving off future premiums in case you are unable to pay them due to loss of income. The biggest advantage of adding this rider to your life insurance plan is that your inability to pay the premium does not result in the loss of coverage or cause the policy to lapse. The policy remains valid so that your beneficiary would have the death benefit to rely on in case of death.
6. Accidental Disability Rider
Accidental disability rider secures you in case of a temporary or permanent disability caused due to an accident. The rider gives you coverage in a pre-defined percentage range of the sum assured depending on your insurance company. However, this rider comes into play only if the disability ensues due to an accident. Hence, it is necessary to read the terms and conditions and know the exclusions before buying such insurance riders.