What are Life Insurance Riders? Know The Types and Benefits

You never know when an emergency might strike. At such times, a life insurance policy can be a blessing. Yet, not all the time can a single insurance policy provide all the coverage you need. Here is when life insurance policy riders can help with the extra coverage you need.

An insurance rider is a coverage enhancement or an add-on to a policy that offers additional risk coverage. The conditions, costs, and the rider type will depend on the term plan and the insurer.Riders may be a part of some insurance plans. In others, you may have to purchase it separately. You can buy the rider when you buy the insurance policy or at the time of its renewal.

Riders work in a way to offer an insured an extra helping hand when the main policy may not be enough. For example, if an insured were unable to attend the office due to an accident, his main insurance policy may cover treatment costs. What about the expenses he will have to incur because he couldn't work? If he takes a personal accident rider, he will receive additional monetary compensation. It could help him pay for his expenses, excluding treatment costs.  But then, you should choose a rider as per your requirement.

• Waiver of Premium: In case the insured is unable to pay any future premiums due to death or loss of a job, the rider ensures that the policy continues. It means the insured get the term benefits as well, and the insurance company pays the remaining premiums.
• Accidental Death Benefit: The nominee will get the assured sum as well as the rider benefit in case of accidental death of the insured.
• Accidental Partial or Permanent Disability: It is in case of the insured suffering partial or permanent disability in accidents and unable to work. It pays the insured a percentage of the rider benefit as a regular monthly income.
• Critical Illness: The rider covers critical illnesses, including paralysis, cancer, kidney diseases, etc. The policy guidelines may give a list of illnesses covered under the category. The insurance company will pay the benefit from the rider upon the diagnosis of the illness.

Buying a rider along with insurance can offer several benefits if an unfortunate event occurs in your life. Choose the right rider as per your need and take the next step towards securing yours and your family’s interests.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.