Top 5 reasons to Add Riders to Insurance Policy

Top 5 reasons to Add Riders to Insurance Policy!

Including riders in your life insurance policy entails incorporating extra insurance coverage alongside the existing base policy. This feature offers several advantages, allowing you to customize your life insurance based on your specific requirements. By adding riders, you not only enhance your policy but also gain additional financial protection for both yourself and your loved ones.

Types of Insurance Riders

  • Accelerated Death Benefit Rider
  • Critical Illness Benefit Rider
  • Accidental Disability Benefit Rider
  • Income Benefit Rider
  • Waiver of Premium Rider

Read here to know more about Insurance Riders

Top 5 reasons to add riders in your insurance policy

  1. Enhanced Coverage

Adding insurance riders to your insurance policy enhances the basic term life insurance plan. Everyone knows and agrees that death is the usual cause of financial difficulties for any family. However, life-threatening illnesses and accidental disabilities can also be equally devastating. By adding riders to your life insurance plan, one can get better and extended protection for the family to cope with any kind of unforeseen circumstances.

For instance, if you have purchased initially a base insurance plan of up to Rs 1 Crore, as a rider, you can add Rs 25 Lakh more with a critical illness rider. Covers all expenses related to the accidental death and long hospitalizations.

  1. Financial Protection

Adding riders to your insurance policy also offers financial assistance in a case dealing with accidental or critical illness disability. Having only a basic insurance plan may also result in loss of income, making it difficult to continue paying premiums. It states whenever the insured submits a claim for critical illness or disability, your life cover will continue without any additional premium payments.

  1. Saves from the hassle of managing multiple insurance plans

Rather than buying various insurance plans for additional coverage, you can simply add riders to your basic plan. Riders offer coverage against permanent disability, total/partial temporary disability, loss of income, accidental death, critical illness, and many more. You only need to pay an additional premium for the riders added to your basic plan. After that, enjoy the combined and added benefits. One also you need to take care of is keeping in mind the maturity or expiry of the insurance plan, as some riders may expire before the base life cover does.

  1. Customizable and Cost Effective

The other reason to go for add-on riders in insurance plans is that it is customizable as per the specific requirements. You can remove or add riders as per your needs and requirements. Apart from that, adding riders to your life insurance plan is more cost-effective rather than buying all new additional insurance plans. The policy premiums are also affordable and even waived in case of disability, accident, or sudden demise of the policyholder.

  1. Tax Benefit

The premium paid for life insurance riders is eligible for tax deductions under Section 80C of the Income Tax Act.

Read more: Insurance and Taxes

Key Takeaways

Whether it is protecting you and your family against critical illnesses, accidents, or any kind of disability, all is possible by adding riders to the insurance plan.

A rider is an addition to your basic insurance plan coverage. Riders include health care coverage, accidental death coverage, critical illness coverage, disability coverage, and even offer assistance for your child’s education.

If you are looking to enhance the protection, which your life insurance plan currently provides, getting an add-on rider is the ideal option. With many insurers now offering a wide range of add-on covers over insurance plans, you have plenty of options to choose from.

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Frequently Asked Questions

  1. What are the most common types of Life Insurance Riders in India?

Some of the most common types of Life Insurance Riders in India are critical illness riders in India, accidental death and disability rider, premium waiver rider, and term rider.

  1. Is it mandated to add riders to life insurance policy?

It is not mandated to add riders to your life insurance policy in India. However, if you add, you will enjoy additional protection and peace of mind. Before adding riders to your insurance policy, always analyze the needs and circumstances.

  1. Are there any guidelines or restrictions on the type of adding riders to your existing Life Insurance Plan?

Yes, there are certain guidelines one needs to follow like some riders one can only add in Term or Whole life or term insurance. Additionally, policyholders may need to meet certain age or health requirements to be eligible for certain riders.

  1. What would be the cost of adding riders to the Life Insurance Policy in India?

The cost of adding a rider to your life insurance policy in India varies based on the rider type and insurance provider. Adding riders to your Life Insurance Policy requires an additional premium payment. Before choosing a rider, always review the terms and conditions of the rider.

  1. Can we remove or change riders from our basic insurance plan?

Yes, we can make editions to riders from a life insurance policy in India. However, make sure to remove riders, you have gone through with the terms and conditions of the policy and rider to understand about penalties or fees applicable.

  1. Add-on riders offering death benefit payout.

Yes, you can get a death-benefit payout from add-on riders. In case, the policyholder met with sudden demise while the rider is in effect, additional coverage was provided by the rider in addition to the base death benefit.

  1. Can we add riders to our Group life insurance policies also?

Yes, we can add riders to your Group Life Insurance Policy in India after reviewing options and considering the need and requirements.

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