Life is highly uncertain. A term insurance plan acts as a cushion and ensures the financial security of your family in the event of an unfortunate incident taking place. A term plan is a highly cost-effective way of providing a financial safety net to your family. It offers a high amount of coverage at competitive rates.
However, if you have selected the best term plan for yourself, your work isn’t done yet. You must also consider policy add-ons, called riders, along with it. While term insurance, primarily, is one of the most important aspects of your financial planning, it is wiser that you back it up with riders to get the most out of the policy.
What is a rider?
Riders are an additional benefit or an extension on your term insurance plan, is over and above the basic cover. They enhance the coverage of your original policy and offer extra features and flexibility, apart from the core benefits. They help the life insured in customizing the policy according to his needs and those of their family’s. Riders are either in-built into your insurance plan or are optional. However, you’ll have to pay an additional amount at nominal rates to get the benefit of a rider.
Why are riders beneficial?
Opting for a separate insurance policy, in addition to your current one, that provides coverage under specific circumstances can be heavy on the wallet. A rider, on the other hand, helps you attain that same coverage at competitive rates and saves you the trouble of purchasing a whole other policy. Availing of a rider is a hassle-free process and eliminates the paperwork and administrative processes you would need to endure when opting for a separate insurance policy.
Important Riders That You Must Consider And Their Benefits
1: Accidental Death Rider: Every year, around 1.35 million people die due to road accidents across the globe. In India alone, the number of those who lost their lives on roads touched 1.5 lakh in 2018. With these alarming figures, it becomes necessary for you to opt for the accidental death rider along with the main policy. While the basic term plan offers the death benefit, the accidental death rider will help boost coverage. If you include an accidental death rider with your life insurance plan, an additional amount will be paid to your nominee along with the death benefit.
2: Critical Illness Rider: With our ever-changing lifestyle and food habits, critical illnesses like diabetes, stroke, heart diseases, and cancer have become more common in the recent past. They account for more than 50 % of total deaths in India. The treatment for critical illnesses is expensive and can drain out a significant portion of one’s savings. In such a condition, a critical illness rider provides patients and their loved ones with financial relief. The rider will dole out a predetermined amount to the life insured upon diagnosis of a heart attack, cancer, or any other critical illness.
3: Total And Permanent Disability Rider: According to the ministry of road transport and highways, around 4.6 lakh people were injured in road accidents in 2018. The figure keeps increasing every year. If an insured person meets with an accident and is physically handicapped due to permanent and total disability, this rider acts as a much-needed financial cushion for their future needs. The Total and Permanent Disability Rider covers a predefined set of disabilities such as loss of eyesight or loss of limb use.
4: Child Support Benefit: In order to safeguard the future of your child, you can opt for a Child Support Benefit. A Child Support Benefit provides an additional sum of money, over and above the usual sum assured, to tend to the financial needs and goals of your child.
The main purpose of a rider is to provide an extra layer of protection to the insured for instances during which the scope of the main policy is limited. Make sure that you add a rider to your plan to boost your basic coverage plan, thereby taking care of your loved ones even when you’re not with them. The list of riders available with a term plan may vary from one insurer to another. The iSelect Star Term Plan from Canara HSBC Oriental Bank of Commerce offers an Accidental Death Benefit Rider, Accidental Total & Permanent Disability - Premium Protection Rider, Accidental Total & Permanent Disability - Premium Protection Plus Rider and a Child Support Benefit (CSB) Rider. Apart from these riders, it also provides highly customizable features to suit the needs of your family.