Term Insurance riders – what you need to know

Term life insurance is an insurance product, which offers death benefit to the nominee in the event of the insured person’s sudden death during stipulated period. Every one of us always wishes to have a single insurance policy that will provide us with multiple benefits besides its core offering that’s here death benefit.

You can get a term plan with extra benefits by paying an additional amount for it. However, many of us think why to pay more. Remember, those extra privileges or benefits strengthen a term plan, and you just need to spend few extra bucks. Riders add extra value to your term plan. A Term life insurance policy provides financial protection in case of untimely death of an insured person. However, life is uncertain, and there can be other untoward events which can lead to financial loss. In such a case, riders can prove to be beneficial to provide financial security to face such situations.

Riders available for term insurance:

• Accidental death and dismemberment
• Critical illness
• Accelerated sum assured
• Waiver of premium
• Partial and permanent disability

Various insurance companies offer different riders and different benefits. So, you need to make a well-educated decision and choose riders carefully. Let us have a look at some of the important riders mentioned above –

Accidental Death Rider – The accidental death term rider offers an additional sum assured in case of untimely death of the insured person due to a road/car/bus accident. So if a person buys a term policy of 60 lacs sum assured with an accidental rider of 20 lacs, then his nominee will get 60 lacs in case the death that is not because of an accident and 80 lacs in the event of mortality due to an accident. So, in short, this rider gives supplementary sum assured in the case of death happened due to any accident. Low premium is charged in case of this rider, as the accidental death benefit rider provides the insurance cover.

Critical illness – Some illnesses make a person incapacitated temporarily or permanently. A person is not able to work after suffering such illness. Higher medical costs are needed for treating these illnesses. Further, a person may face a financial loss because of the financial burden of treatment and loss of earning. The critical illness rider provides the benefits to the insured person in such case. Some of the most common critical illnesses include cancer, heart attack, paralysis, coronary artery bypass surgery, or major organ transplants like pancreas, heart, liver or lung, etc., kidney failure and Stroke.

The term insurance riders surely prove to be beneficial when eventualities like the ones mentioned above are considered. It is true that we cannot prevent some incidents from happening. However, we can plan ahead and be prepared to face such eventualities. Insurance riders are an essential aspect of such planning.

It is essential to understand the concept of riders and how it provides you benefits. Also, you need to choose riders carefully so that you get the benefits and can provide financial security for your family in case of unavoidable situations.