Given life’s uncertainties, managing your finances effectively is crucial. Term insurance serves as a safety net for your family and loved ones in your absence. Having a term plan in place relieves you from financial stress and provides peace of mind. Furthermore, adding the right riders to your term plan provides comprehensive coverage and ensures ultimate protection.
This article will explore how you can customise your term plan for better coverage with additional riders.
What is a Term Insurance Rider?
A rider is an add-on benefit or additional cover that you can incorporate into your basic term insurance plan. By incorporating riders, you and your family can benefit from extended protection beyond the core policy. However, adding these riders will increase your premium amount based on the sum assured and other conditions.
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How to Customise Your Term Plan with Additional Riders?
Here are a few additional riders you can include in your term insurance plan to enhance the financial coverage:
1. Accidental Disability Rider
The accidental disability rider ensures that if you become disabled due to an accident, the sum assured against this particular rider is paid out. It can be paid as a lump sum after the accident or monthly in equal installations for a set number of years. You can add this affordable rider to your 1 crore term insurance.
2. Accidental Death Rider
The accidental death rider ensures that you and your family members are covered accordingly if you die due to an accident within the term. The insurer shall pay an additional amount assured through this rider to the family or dependent. It stands separate from the sum assured that the family will receive for the basic term life insurance policy.
3. Critical Illness Rider
It makes you eligible for a lump sum amount when you are diagnosed with some critical illness, as mentioned in the rider policy of the original term insurance plan. The rider incorporates coverage for illnesses such as cancers, heart disease, kidney failure, and other critical illnesses. Hence, the insurance covers these expenses since they are expensive, giving you time and the ability to focus on your recovery without worrying.
4. Waiver of Premium Rider
The premium waiver rider sees that all future premiums, without affecting the policy, are waived in case you cannot pay the premiums, along with continuance throughout the term. In simpler terms, with this rider in place, you won’t risk losing death or maturity benefits due to non-payment caused by a disability.
5. Terminal Illness Rider
When faced with a terminal illness diagnosis with an estimated prognosis of less than 6 to 12 months, the Terminal Illness Rider can offer significant support. It shall pay the amount to the nominee or dependents without waiting, providing financial relief when it’s needed most. However, confirmation has to come from the registered medical practitioners of that particular field.
6. Income Benefit Rider
While purchasing this rider along with the term insurance, you have to decide for how many years you want your dependent to avail of this benefit. The sum assured is given as a monthly income to your family in case of your demise during the policy tenure.
How to Customise Term Plans with Riders?
Here is a step-by-step process you can follow to add riders to your life insurance policy:
Step 1: Visit the website of your preferred term insurance company, having a rider option.
Step 2: Click the ‘Term Insurance’ option and enter the required details, such as age, income, gender, desired sum insured and tenure for the policy.
Step 3: Once you enter the details, the screen will display the appropriate term insurance plan.
Step 4: After this, you can select the desired plan and the riders you want to include in the policy.
Step 5: You can read the terms and conditions and check their inclusions and exclusions.
Step 7: After finding the correct policy according to your requirements, you can request a quote from the preferred insurer. It will help you get a more accurate estimation of your preferred pan.
Step 8: Once you are pleased with the quotation, you can contact the insurer to complete the insurance application process.
Please note these steps are generic and may vary from one insurance company to another.
Final Word
Overall, term insurance riders are beneficial as they offer extra coverage. However, you must check their respective benefits before including them on your life insurance policy. Add only those riders based on your needs, as they come with extra premiums.
