Vishal Pathak, Content Writer | Thursday, 29 August 2024, 11:09 IST
When it comes to ensuring our family's future, term insurance is frequently the most reliable option. But did you know that you may supplement your standard 1 crore term insurance coverage with additional benefits? Riders and add-ons in term insurance allow you to tailor your policy to meet your individual require- ments. They offer additional protection against life's different unforeseen circum- stances.
Let us delve into the realm of riders and add-ons and see how they might supple- ment the security net offered by term insurance.
An accidental death benefit rider ensures that if the policyholder passes away due to an accident, the nominee receives an additional sum assured along with the basic term insurance cover. This rider is particularly useful for those who have jobs or lifestyles that expose them to higher risks. For instance, if someone has a 1 crore term insurance, with an accidental death benefit rider of 50 lakhs, the nominee will receive 1.5 crores in case of accidental death. This rider can significantly boost financial security for the family.
A critical illness rider pays out a cash sum if the policyholder is diagnosed with any of the critical illness diseases such as cancer, heart attack or stroke among others. This benefit is important as it assists in catering for the expensive medical bills that are incurred in managing such diseases. Especially in India, where medical costs can be quite high, this rider can bring a lot of comfort and allow the policyholder to get the best treatment without worrying about the costs and being left penniless.
The waiver of premium rider guarantees that if the policyholder is unable to pay future premiums due to permanent disability or critical illness, the insurance company will waive all future premiums while the policy remains active. This rider is helpful because it allows the term insurance policy to remain in force without placing a burden on the policyholder during tough times.
The income benefit rider pays out a monthly sum to the nominee along with the lump sum amount after the death of the policyholder. This rider guarantees that the family has constant income for other regular expenses such as food, children’s school fees, or house mortgage. It is especially helpful in India where families mostly depend on the earnings of the head of the family for necessities.
This rider provides cash benefits if the policyholder becomes totally and permanently disabled as a result of an accident. It offers a one-time payment or periodic payments to address the loss of income and other expenses due to disability. This support can be essential for the quality of life and to address the expenses of rehabilitation or home adaptations.
A terminal illness rider helps the policyholder to get a part of the sum assured when he or she has been diagnosed with a terminal illness and needs financial assistance. This rider helps the policyholder cope with medical bills or achieve personal desires without worrying about the costs, which provides comfort in challenging situations.
Like the income benefit rider, the family income benefit rider guarantees a steady income to the family for a certain number of years after the policyholder’s demise. This rider is especially advantageous for families in India who rely on the policyholder’s earnings to meet their daily needs and sustain their living conditions.
The spouse cover rider is an option that adds the policyholder’s spouse to the same policy to increase the term insurance coverage. This rider is an inexpensive method of offering life cover to both partners so that in the event of either of the partner’s death, the family is shielded.
This rider guarantees that in the unfortunate event of the policyholder’s death, the child’s education costs will be catered for. This rider can be highly beneficial for Indian families where the costs of education are continuously increasing, and it can help children to continue their education without worrying about expenses.
The hospital cash benefit rider pays a specified amount per day during hospitalisation which relieves the cost burden of hospitalisation. This benefit can include different non-medical costs like transport, meals, and other necessities so that the family feels no pinch on the pocket during the hospitalisation period.
A surgical care rider provides a fixed amount for surgeries that are not life-threatening and are listed in the policy. This rider is very useful in that it can help pay for costly surgical procedures and any related expenses that may be incurred in the event of a medical emergency that requires surgery.
This rider offers protection against a range of other circumstances involving an accident such as accidental death, partial and total disability. It provides cash compensation based on the degree of the accident and covers the policyholder and his/her family against various implications of the accidents.
The long-term care rider allows the policyholder to receive payments for long-term care needs in case the person is unable to perform daily activities because of an illness or disability. This rider protects the policyholder from being financially drained when accessing quality long-term care services.
The return of premium rider guarantees that if the policyholder survives the policy term, all the premiums paid are refunded. This rider works as an endowment and life cover in one package, and if the risk is not realised it offers the opportunity to get back the money invested.
Riders and add-ons to term insurance provide additional protection and personalised benefits to meet specific requirements. These extra choices provide extensive coverage beyond the standard insurance, including accidental death benefits, critical sickness coverage, and income benefit riders. They provide cash assistance in a variety of life situations, including crises, sickness, and sad occurrences. By understanding and selecting the appropriate riders, you can maximise the advantages of your 1 crore term insurance policy, ensuring that your family's financial future is safe in any situation. Investing in these riders is a wise way to develop a strong financial safety net.
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
