Have you ever invested your money in buying a vehicle and suddenly realised the importance of having add-on covers and additional coverage for your automobile? It is not about the only vehicle, there are many cases which tell us about the importance of having additional coverage and backup plan to support us during emergencies. Most people neglect the benefits of having good add-ons. When it comes to term insurance, it is the most needful coverage that a person should have for their family.
Term insurance refers to be the important life insurance policy that offers the needful financial cover to the family of the insured in case of any mishappening. In the case of death of the insured person, the beneficiary or nominee can claim for the death benefits from the insurance company. So, adding riders to your existing term insurance plan is always a good option to provide extra cover to your family during their hard times.
Basically, riders are like those useful tools that will get attached to the main product to improve its worth and functionality. It is advisable to pay attention to the types of riders that you are going to add, as today’s the market is full of effective riders and all seems to be important for different stages and needs of a person. You have to choose the best rider that will make your plan more effective for which you are paying.
Riders are the additional protection that you will add to the basic term insurance plan. The term insurance riders come into the picture on an occurrence of any specific event and offer the needful extra cover.
What are the different riders that you can add?
“Critical Illness rider”
If your family own a history of having a critical illness, then this is the right thing that you must add to the basic term insurance plan. Usually, a critical illness rider offers the needful coverage against the cost of critical illness treatment. It will provide the helpful lump sum benefits and will be there to pay for the expensive critical illness treatment. It refers to be an important rider as most of the health insurance policies don’t provide coverage on the same. In case of unfortunate death of the policyholder because of critical illness, then the term insurance plan benefit will be paid to the family/nominee of the insured.
“Waiver of Premium”
One of the essential term insurance rider that you must look for is Waiver of Premium. This rider is a helping hand for those who have a doubt when it comes to the payment of premium on time because of any scenario. Insurance companies provide the needful financial protection in case of any mishappening. And to get this assistance on time, you have to pay a fee which is called premium. The amount of the premium is calculated on the basis of several factors such as income, age, type of plan and much more. You have to pay this amount from your monthly or yearly budget. What if you lose the income source or something drastic happens that does not allow you to pay a premium on time, then how will you keep your policy active? This rider “Waiver of Premium” will help you in paying your premium and keeps your policy active.
This rider allows meeting the expense that takes place out of any unexpected accidents that can be devasting for the entire family. In India,a major proportion of death cases occur because of accidents that leave the entire family of the insured devastated. For the family, it is a big shock that spoils them financially and emotionally. In such situation when they have to take responsibility of each and everything on their own. Because of the same, several other emergencies takes place. No matter, what the situation is, it is true that in such cases a financial help is a big relief. To get the coverage against such situations, accidental death rider gives required additional coverage on the base sum assured. This is a very helpful rider as it provides the extra financial help especially when your family needs it the most.
It is a fact that we can’t predict future, but depending on the needs one can easily prepare himself/ herself from any unwanted situation. You can customise your term insurance play with additional riders so that it can easily go well with different needs and stages of life. By choosing the appropriate rider, you will get additional benefits that will make your insurance policy more effective. Riders can boost your term insurance plan effectively. So don’t waste your time, search for the appropriate rider today and take advantage of the enhanced coverage.
Views expressed in this article are of Naval Goel- CEO and Founder of PolicyX.com and do not necessarily represent or reflect the views of the publishing house.