By purchasing life insurance online, you do the best you can for your loved ones. The policy will provide financial security to your family in case of an unfortunate incident. In addition to the basic cover, you can give them extra protection through life insurance riders.
A rider is a provision that adds an extra benefit on your basic insurance cover. You are free to choose the riders that fit your needs. A rider will enhance the cover and will help you build a policy that suits your personal needs.
You can purchase the riders at a nominal cost and enjoy an additional benefit. The maximum benefit you can enjoy depends on the rider you choose. However, the total premium on all riders should not exceed 30% of the basic premium.
- Accidental death benefit rider
It is one of the most common life insurance rider types. In this rider, you can choose a single, limited, and regular premium option. This rider will provide you with protection until the end of the policy term of your base plan. It will pay a certain sum assured in case of an accidental death.
- Term benefit rider
Through this rider, your nominees get the sum assured in case something untoward happens to you. It will provide protection until the end of the policy term and provides flexibility in premium payment. You can also enjoy income tax benefit on the premium paid according to Section 80C of the Income Tax Act, 1961.
- Permanent disability benefit rider
One of the most important insurance riders, permanent disability benefit rider will pay the specific sum assured in case of a permanent disability. You can choose to pay a single, regular, or limited premium option. There is no maturity benefit in this rider.
- Waiver of premium rider
This rider will work when you are injured or diagnosed with an ailment and are unable to provide for your family. When you have this rider, you will not have to pay premiums but the plan will remain active.
- Accelerated death benefit rider
This rider will come into force in case of a terminal illness. When a critical illness strikes, the income stops. In this scenario, family members spend heavily on treatment and hospitalization. This is when the rider will make a huge difference. The family will receive the sum assured in case of a terminal illness.
- Return of premium rider
With the return of premium rider, you receive a return from the insurance company. The policy with this rider will offer death and maturity benefits. If you survive the tenure, you receive the premium paid over the years.
Consider your health and financial stability before you choose a rider. You need to carefully access what the rider is offering and then make a decision. It is a wise move to add riders to your basic life insurance cover. It will give you enhanced protection at a nominal cost.
