What Special Riders are Provided by Life Insurance Companies?

What Special Riders are Provided by Life Insurance Companies?

Understand how riders like critical illness and accidental death benefits strengthen overall life insurance coverage.

Written by : Knowledge Centre Team

2026-01-21

881 Views

7 minutes read

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A life insurance policy is designed to offer financial security to your loved ones in your absence. By paying regular premiums, you ensure that your nominee receives a fixed sum known as the sum assured if you pass away during the policy term.

To enhance this basic coverage, you can choose from a range of optional benefits called riders. These riders allow you to tailor your policy to your specific needs, offering additional protection against risks like critical illness, accidental death, or permanent disability. Including riders helps you prepare better for unexpected events and adds more value to your insurance plan.

Key Takeaways


  • Riders are add-ons to enhance your life or health insurance policy without buying a new one.
  • Critical illness, disability, and waiver of premium are some of the most useful riders.
  • Tax benefits are available on rider premiums under Sections 80C and 80D.
  • Canara HSBC Life Insurance offers riders like Terminal Illness, Accidental Disability, and Premium Funding Benefit.
  • Always choose riders based on your needs and risks, not just availability.

What are Riders in a Life Insurance Plan?

Life insurance riders are the add-ons that can increase the sum assured of your life insurance policy. Thus, through riders, you can get yourself additional coverage over and above the sum assured. These are additional benefits that can enhance the scope of your existing policy.

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Why Should Your Life Insurance Policy Have Riders?

Riders or added benefits offer many advantages for you under the single base policy. The most prominent reasons why you should include riders in your life insurance policy are as follows:

  1. Increase the Coverage: Riders can help you cover those events and happenings that your base policy does not. By broadening its existing scope, you now get more from your existing life insurance policy.

  2. Economical: Riders are available as add-ons to your policy; that is, these get included in the policy you have already purchased. Thus, life insurance riders ensure that you do not have to purchase another life insurance policy.
    This makes your policy economical. Yes, the premiums increase, with riders, but the cost that you have to pay to add the rider is much lower than the cost you would pay as premiums for another life insurance policy.

  3. Provide Flexibilities: Insurance companies offer many riders for policyholders. You are given full freedom to choose the riders. You can add or remove a rider at any time during the policy. This helps you to customise your plan according to your needs. The insurance company also offers you the flexibility to choose your sum assured associated with a rider.
  4. Tax Benefits: Like your life insurance policy, the riders you choose to add on are also eligible for tax savings. They are also available for deduction u/s 80C. The sum assured that you receive from a rider is also tax-exempt u/s 10(10)D of the Income Tax Act.

    Specifically:

    • Life-related riders (such as accidental death benefit or waiver of premium) qualify under Section 80C, up to the ₹1.5 lakh cap.
    • Health-related riders, such as critical illness coverage, can be claimed under Section 80D, subject to limits of ₹25,000 (₹50,000 for senior citizens)

Also, Learn what is Income Tax Return

Types of Riders Available in a Life Insurance Plan

Now that we know what riders are in insurance and how they can help improve your existing life insurance policy, let us move a step forward and take a look at the special riders provided by life insurance companies.

Here are the riders that are offered:

  • Critical illness riders
  • Accidental Death benefit
  • Accidental and total permanent disability
  • Child support benefit
  • Premium Waiver Rider
  1. Critical Illness Rider: This rider pays you a pre-determined sum if you get diagnosed with a critical illness. Any disease or condition that can have fatal consequences and requires immediate and major treatment can be counted as a critical disease.
    Diseases such as cancer, stroke, heart disease, organ transplant, and others listed by the company can all be categorised as critical or terminal diseases. These diseases require constant medical care and involve huge costs.
    If you have opted for a critical illness rider and get diagnosed with any of the diseases listed in the policy, you will get immediate payment.

  2. Accidental Death Benefit Rider: By choosing this rider, your family will receive an additional sum assured if your death is due to an accident.
    Accidental deaths can lead to additional costs for your family after your demise. Opting for the accidental death benefit rider can thus help provide your family enhanced financial protection by way of additional sum assured.
    For example, you have purchased a term plan of ₹1 Cr. With this, you have also opted for the ADB rider worth ₹25 lakhs.
    If you die in an accident, then your family will receive a total of ₹1.25 Cr.

  3. Accidental and Total Permanent Disability: This rider offers crucial support if you suffer a permanent disability due to an accident. Such a disability can impact not only your physical and emotional well-being but also your financial stability. It may prevent you from working, leading to a sudden loss of income.
    Depending on the insurance provider, the ATPD rider may offer regular payouts to help cover your expenses or waive off future premiums to keep your base policy active without added financial burden.

  4. Premium Waiver Rider: The premium waiver rider ensures that your family does not have to worry about how they will fund the remaining premiums after your death.
    If you have opted for this rider, then the company will take care of the premiums that remain if you die during the policy term. Premiums to be paid are waived. The policy will continue to run even after your death.

Riders in the Canara HSBC Life Insurance Policies

The wide range of policies by Canara HSBC Life Insurance offers you a variety of riders. You can enhance your policy further with these optional benefits. With these policies, you have the following advantages:

  • Terminal Illness Rider Pre-Included in iSelect Smart360 Term Plan : In most of the policies, you need to purchase a critical illness rider as an add-on to your policy. But in policies such as the iSelect Smart360 Term Plan by Canara HSBC Life Insurance, the critical illness rider is pre-included. Thus, you do not need to pay anything extra to avail this rider.

Under this plan, if you get diagnosed with a terminal illness such as cancer, lung disease, heart attack, etc, then you will get an additional sum assured immediately. To check the diseases that are covered, please refer to the policy’s webpage.

  • Premium Waiver on Disability and Accidental Death Benefit : Permanent disabilities like loss of two limbs, the capacity to see or hear, can affect your earning capacity. Such events often also need your family and infrastructure to adjust to your new requirements. But disability is not the end of life, and so, your life cover must continue to protect your family.

Premium waiver benefit is available with an Accidental Total and Permanent Disability (ATPD) benefit rider in the iSelect Smart360 Term Plan by Canara HSBC Life Insurance. You can also add a sum assured to this rider along with a premium protection option.

Wrapping Up

Riders are a smart way to strengthen your life or health insurance policy without buying a separate plan. While there are several options available, it's important to choose riders that align with your lifestyle, risks, and financial responsibilities. Instead of opting for every available rider, focus on those that truly add protection value, such as critical illness, accidental death, permanent disability, or premium waiver benefits.

The right riders can make a major difference when life takes an unexpected turn. For a nominal additional cost, you can ensure that your policy becomes more comprehensive, responsive to real-life situations, and tailored to your unique needs.

When selecting a rider, always review the terms and coverage limits. Consult with your insurer or advisor to make informed decisions. A well-chosen rider boosts your policy’s efficiency and also strengthens your financial shield for the future.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

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Life Insurance - Top Selling Plans

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Family Shield: Enhanced Protection

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Start Young, Pay Less, Stay Secured

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