When you consider term insurance plans, you may question if there are methods to improve the basic coverage. The good news is, they exist! Term insurance riders and add-ons can provide additional levels of protection and benefits based on your requirements. Whether you are considering a basic term insurance plan or a term insurance with a return of premium, understanding these additional features can help you make a more informed decision. Let’s dive into the various riders and add-ons available in India and how they can enhance your term insurance plan.
Things to know about term insurance riders and add-ons
- Accidental death benefit rider
This rider offers an additional amount of coverage if the policyholder dies from an accident. It is particularly beneficial for those people who work in dangerous professions or for those who often have to travel. This extra amount can assist in meeting other costs that may occur due to accidental death and make the family financially secure.
- Critical illness rider
The critical illness rider provides benefits for serious conditions such as cancer, heart attack, and stroke. In the case of a covered illness, a lump sum benefit is paid out. This can be used to pay for medication, treatment, or other costs that the family might face during such times without having to spend the family’s money.
- Waiver of premium rider
This rider comes in handy when the policyholder is unable to pay premiums due to disability or critical illness; it exempts future premiums while keeping the policy life. This helps in sustaining coverage without having to pay for premiums, which can be a relief during tough times.
- Accidental disability rider
In case of permanent or partial disability due to an accident, this rider provides financial support. The payout can be used to pay for medical bills, rehabilitation, and lost wages. It is especially helpful to those providing for the family as it guarantees their financial security during the process.
- Income benefit rider
This rider pays the family a fixed amount of money every month for a given period after the policyholder has died. It assists the family to meet their everyday needs and remain financially stable, which can be crucial in such a situation.
- Term insurance with return of premium
In contrast to normal term plans, this concept pays back the total premiums at the end of the term if the policyholder is alive. The premiums are a bit higher but as you get your money back it is ideal for those who want to be protected but also save and invest.
- Hospital cash rider
This rider pays a fixed amount of cash per day in the event of hospitalisation. It assists in paying for incidental expenses that are not catered for in the normal health insurance such as transport costs for other family members or special diets cutting down on the expenses during the hospital stay.
- Surgical care rider
This rider pays a fixed amount on the occurrence of a covered surgical procedure. It is intended to cater for the expenses that are incurred in surgeries and other related procedures to avoid any financial hardships that may arise from medical bills.
- Family income benefit rider
Similar to the income benefit rider, this option ensures a regular monthly income to the family if the policyholder passes away. It helps the family to have a constant income and it also assists the family to maintain their standard of living without much struggle.
- Education benefit rider
This rider guarantees the policyholder’s children a certain amount towards their educational expenses in the event of the policyholder’s demise. It provides for the children’s educational security, meaning that they can achieve their academic dreams without any financial barriers.
- Spouse-term insurance rider
This rider provides coverage to the policyholder’s spouse under the same policy. This makes it cheaper to ensure both partners, so the family is financially secure if either partner dies during the policy term.
- Child support benefit rider
In the unfortunate event of the policyholder’s death, this rider ensures that a specified amount is paid for the financial needs of the children. It assists in meeting the costs of childcare, education, and other requirements that would otherwise protect the future of the children.
- Loan protection rider
This rider pays a fixed amount of money to the policyholder in the event of his or her death to clear any balance on the loans. It also makes sure that the family cannot be dragged into any sort of financial losses, and that they are financially secure during such times.
- Terminal illness rider
If the policyholder is diagnosed with a terminal illness, this rider provides a lump sum payout. It pays for medical bills and provides financial means for the family to care for the policyholder until their last days.
- Double indemnity rider
This rider increases the amount of the policy twice if the policyholder dies from an accident. It provides improved financial security, thus guaranteeing a significant amount of money to support the family’s requirements and sustain their standard of living.
- Guaranteed insurability rider
This rider enables the policyholder to raise the coverage level at certain intervals without having to undergo a fresh medical examination. It is handy for tailoring the coverage to changing financial circumstances, such as marriage, childbirth, or purchasing a new house.
- Lifestyle protection rider
This rider provides financial assistance for changes in lifestyle due to disability or serious illness. It helps pay the expenses of essential adaptations, such as erecting ramps or acquiring medical equipment, allowing the policyholder to live a comfortable lifestyle.
Ending note
Term insurance riders and add-ons are important additions to standard term insurance plans that provide comprehensive coverage suited to your unique needs. Understanding the many alternatives, such as accidental death benefits, critical illness coverage, premium waiver, and term insurance with premium return, allows you to select the best combination to protect your family’s financial future. These extra features ensure that your term insurance policy not only covers the necessities but also tackles unforeseen scenarios, providing peace of mind and financial stability. Making an informed decision about riders and add-ons today can significantly enhance the value and effectiveness of your term insurance plan.