The benefits of buying term insurance are immense. What if someone told you that you could enhance your existing term life insurance cover by adding riders available at added premium charges? While it may sound addition to your expenses, spending a few extra bucks now will make you eligible for the privileges or benefits you earn in the long run.
The common term insurance riders that term life insurance companies available are
Critical Illness Rider:
The policyholders receive a lump sum amount on being diagnosed with any of the critical illnesses mentioned in the policy document. Some of these critical disorders may include cancer, heart attacks, cardiovascular problems, by-pass graft surgery, kidney failure, paralytic attack, etc. As per the terms and conditions stated in the policy, the insurance company may decide to terminate the policy after paying the sum assured. The insurer may also continue the policy throughout the entire policy period for a lower policy coverage owing to a lump sum paid at the time of diagnosis.
Waiver of Premium Rider:
There is always a possibility of you unable to pay premiums owing to death or disability. Non-payment of premiums can cause the policy to be terminated by the insurance company. Opting for this rider ensures that your policy does not cancelled due to non-payment of premiums. Having this rider in place means that not only your future premium charges are waived off but your policy continues to be in force till the maturity date.
Accidental Death Rider:
Deaths due to accident are pervasive. This explains why one must opt for this rider. While nothing can replace the grief or feeling of emptiness from the death of a loved one, choosing this rider while buying term insurance ensures that the insurance company offers an amount over and above the sum assured determined while paying for the policy. The nominees of policyholders are promised nothing beyond the sum assured. However, this rider means that the dependent(s) gain an added cover amount as a financial security against untimely death.
Permanent or Partial Disability Rider:
This rider comes into effect only when policyholders have met with a temporary or permanent disability due to an accident. Insurance companies, as per the terms and conditions of the contract, pay 5-10 per cent of the Sum Assured for the next decade after the accident. This means that the effect of sudden disability is assuaged as the insured is promised a regular income in place. However, it is important to read the policy details carefully so that one is sure about the percentage of sum assured that would be disbursed by the insurer as regular income.
Income Benefit Rider:
Nota all term insurance plans come with this rider, which means that you will have to find out which insurance company allows its customers to opt for this rider by simply paying extra premiums. Policyholders who want to secure their nominees’ future with an added income source other than the policy coverage amount can opt for this rider. Most insurance companies avail a supplementary income equal to 10 per cent of the sum assured over a span of 10 years after the policyholder’s death.
The internet has made it possible for people to buy term insurance online. Not only are customers are relieved of the hassle of filling in physical documents, but they are able to buy their choice of term insurance plans at much lower costs than the offline version.