Benefits of adding riders to your life insurance plan

If you pass away suddenly, life insurance may give your loved one financial stability. It is an essential financial safety net. Life insurance policies are regarded as the cornerstone of sound financial planning in India. A typical life insurance policy, however, might not be all-inclusive enough to cover every scenario. This is the role of riders.

Riders are supplemental benefits or add-ons that you might include with your standard life insurance policy. They provide protection against particular circumstances not included in the main insurance policy. This is why it is critical to include riders in your life insurance policy –

  • Enhanced coverage

Life insurance plans furnish the minimum amount of financial security to your family in case of your unforeseen death. However, there are some circumstances, like critical illness or disability, which are not included in the basic life insurance policy. Riders expand the scope of your policy by offering specific coverage in case of such situations which gives you and your family financial protection against more types of critical scenarios.

  • Customisation

The financial needs of every individual are different. Different things work for different people. Riders allow you to customise your life insurance plan to suit your needs and circumstances. Whether you are looking for medical emergency coverage, disability coverage, or accidental death coverage, you get the choice to choose the right rider that fits your needs.

  • Cost-effective

It is very expensive to purchase separate policies for each type of coverage. Including a rider in your current life insurance policy is a cost-effective way to increase the amount of coverage. It allows you to use a variety of policies at a minimal cost. This is a cost-effective solution for all-weather protection.

  • Financial security

Riders provide extra financial security to your family in case of an accident or death. For example, if you become critically ill or permanently disabled, the riders can give you lump sum payouts or waive future premiums, which can be of great help during tough times.

  • Medical emergencies

The objective of life insurance plans is to provide financial assistance to your dependents in case of your death. On the other hand, a medical emergency such as a critical illness can result in a huge financial burden. Critical illness riders take care of the fact that sudden illnesses are covered by providing you with a lump sum payout to help you with the medical bills.

  • Disability coverage

If you become permanently disabled due to an accident or illness, a disability rider can help you financially. This rider normally pays out a regular income or a lump sum amount, which may help to meet your financial obligations even while you are unable to work.

  • Flexibility

Riders give you the freedom to select the additional coverage that suits your needs the best. You can select and apply various riders that are suitable to your circumstances. This flexibility guarantees that the life insurance coverage you get is designed to offer you the most comprehensive protection.

Benefits of adding riders to your life insurance policy

  • Critical illness rider

This rider assists you by giving financial help when you are diagnosed with a severe disorder like cancer, heart disease, stroke, kidney failure, etc. It provides a lump-sum amount which can be used for medical treatment, paying off debts or other financial obligations, and ensuring your family does not face financial hardship.

  • Accidental death benefit rider

If the policyholder dies accidentally, this rider provides an extra death benefit on top of the sum assured to the nominee. It provides you with additional financial aid for your family in the event of an unforeseen situation.

  • Permanent disability rider

The permanent disability rider pays the policyholder a regular income or lump sum amount if the policyholder is disabled due to an accident. It ensures that the inability to earn does not impact the policyholder’s ability to meet financial obligations.

  • Income benefit rider

This rider ensures that the family of the policyholder receives a regular income in case of the policyholder’s untimely demise. It targets to replace the lost income because of the policyholder’s death and that the family’s standard of living remains unaffected.

  • Waiver of premium rider

If the policyholder is diagnosed with critical illness or becomes permanently disabled, this rider waives off all future premiums and the policy continues. It gives financial relief in difficult times.

  • Term rider

This rider gives an extra death benefit over and above the basic policy cover. It increases the total amount received by the nominee in case of the policyholder’s death and provides added financial security.

  • Hospital cash rider

Such a rider pays a daily fixed cash benefit during the policyholder’s stay in the hospital. It helps to pay for unforeseen expenses like travel, food, etc. which are not covered by health insurance.

  • Surgical care rider

This rider gives a fixed amount if the insured has to go through surgery. It helps to cover the high surgery costs.

  • Family income benefit rider

This rider guarantees a steady income for the family if the policyholder dies. It gives a monthly income to the family for a fixed period and guarantees financial security.

  • Return of premium rider

This rider pays back all the premiums if the policyholder is alive at the end of the policy term, acting as a perfect savings plan.

  • Spouse insurance rider

This rider gives life insurance coverage to the spouse of the policyholder. It protects the surviving spouse from financial difficulties in the event of the policyholder’s death.

  • Child term rider

This rider endows death benefit if the child of the policyholder dies before a particular age. In addition, it serves as financial aid for the child’s future if the policyholder dies.

  • Accelerated death benefit rider

This rider is a feature that provides a payout from the policy if the policyholder is diagnosed with a terminal illness. It can also be used to cover medical and living costs.

  • Guaranteed insurability rider

This rider enables the policyholder to raise the coverage amount at predetermined intervals without having to undergo a medical check. It guarantees that your life insurance maintains up with your growing financial demands.

  • Cost of living rider

This rider increases the death benefit and premium to reflect inflation. It guarantees that the true value of your life insurance policy does not decrease over time.

To summarise, life insurance is more than just a protection plan. It is a complete solution that, when customised with the appropriate riders, may offer dependable financial protection for you and your family. When purchasing a life insurance policy, examine the riders that best meet your requirements and circumstances. It is a modest step towards securing your loved ones’ financial stability in the face of life’s difficulties.