Anyone who is investing into their future in the form of buying a property, investing in markets, starting a business, or through any other means, needs to ensure the safety of their investments. This is done through managing the risks in the investments and taking calculated risks that can provide you a safe way to maximize your wealth. A good part of managing the financial risks in our lives is to make sure that we are ready for all probabilities that can happen in our lives, no matter how remote and unlikely. That is why for smart investors, managing their life risk through a term plan is of utmost importance. The term insurance plan is a great way for you to ensure that your family and dependents are provided for even if you lose your life unexpectedly. There are many term insurance plans in the market out of which you can choose the one that fits your needs, for the right coverage, term duration, and premium. Once you have finalized a term insurance provider and plan that you would like to take, you can use the term insurance riders to customize the plan according to your situations, priorities, and needs. Let us find out what are term insurance riders and how can they make our term insurance plan more comprehensive and effective.
What are term insurance riders?
Term insurance riders are additional clauses that help in improving the coverage of the base plan. There are several types of rides available, which you can add by paying an extra amount and thereby increasing your premium. The riders are quite useful as these provide extra financial benefits along with the base sum assured.
Types of term insurance riders
There are various types of term insurance riders that you can choose from. Here are some of the popular ones mentioned below:
Critical Illness Rider
Medical emergencies are something that can knock on our door at any time in our life. The treatment costs are so high these days that it can become tough to bear them. Critical illnesses such as kidney failure, liver disease, cancer, heart attack, etc. are some of the illnesses that can drain all your savings. In one such situation, a critical illness rider can compensate you with additional financial assistance. If you are diagnosed with any of these illnesses, you will get a lump sum amount that can help you in paying for the treatment. However, to know about the critical illnesses covered in the policy that you have taken, you must go through all the policy documents. The premium of the rider does not change and remains the same until the policy term is over.
Permanent and Partial Disability Rider
If you meet with an accident and one or more of your body parts like arms or legs becomes disabled, it may affect your livelihood. This is one situation when Permanent and Partial Disability Rider can turn out to be very helpful. The rider will act like your income and your family would be able to continue the lifestyle they have been living. The rider comes into effect in the situation of a disability that occurs because of some kind of accident. For partial disability, partial sum assured is provided, and for total and permanent disability, the entire sum assured is provided. However, the term and conditions may vary from one insurance company to the other.
Accidental Death Rider
On your sudden demise which happened due to an accident, the beneficiary of your term insurance plan will get the sum assured or the death benefit. Along with this, the Accidental Death rider will act as an extra layer of financial security for your family. This rider benefit can be availed only in case of accidental death. The premium that you have to pay is less as the rider covers only accidental deaths. You also must know that the benefit can be availed only if the death of the insured occurs within three months of the accident. There is no change in the amount of premium and it remains the same throughout the term insurance policy.
The other types of term insurance policy riders include Waiver of Premium Rider, Income Benefit Rider, and Accelerate Death Benefit Rider. To know more about the riders, you can visit IIFL’s website. You can also find several term insurance policies on the website which you can compare and then make the decision of buying one thereby protecting your family’s financial future.