Adding riders to your term insurance policy can strengthen your coverage, but they come with additional costs and specific conditions. Let’s look at the key things you must know before choosing riders.
Assess Your Needs and Current Coverage:
Before selecting the riders, evaluate your existing coverage and circumstances. Ask yourself questions such as:
- Do you have dependents who rely on your income?
- Do you have any existing health coverage or accident insurance?
Riders strengthen your base policy, but they do not overlap with existing plans. Review your needs carefully and select riders that provide meaningful protection without paying for unnecessary add-ons.
Consider Popular Riders:
Some riders are more popular because they address the most common risks. A critical illness rider provides a lump sum payout if you are diagnosed with a serious condition like cancer or heart disease. The waiver of premium rider ensures your policy continues in case you are unable to pay due to disability or illness. These riders enhance your base coverage and provide financial cushioning in tough scenarios that might drain your family’s resources.
Consider the Cost Element:
Riders come with an additional premium on top of your base policy. Generally, the cost is affordable, but it is important to compare the value of the rider against your budget. For example, if a critical illness raises your premium, you have to evaluate whether you need it or you already have health insurance covering those risks. The best strategy is to maintain a balance between adequate coverage and affordability.
Read Terms and Conditions Carefully:
Every rider comes with their unique terms and conditions. A critical illness may cover only a specific list of illnesses, while others may be excluded. Similarly, some riders become active after a waiting period only. Make sure you read the document carefully before applying it.
