Term insurance is one of the most important insurance investments you will make in your lifetime. Buying an effective term insurance plan will help you keep your family’s future financially secured even in your absence. To choose an effective term insurance plan, it is necessary to choose a plan with the right riders.

The premiums paid towards the term insurance policy by the policyholder cover the pre-mentioned risks. This means that the insurance company offers compensation for the pre-mentioned risk that might occur to the insured person. If there is no claim made during the term, then the insured person receives the total paid premium amount.

The premiums on term insurance policies are lower as compared to the money-back policy. To get more benefit on term insurance cover, that is, to increase the coverage, you can opt for add-ons, also called riders, that are offered by the insurance company on the basic term insurance plan.

What are term insurance riders?

Riders are basically add-on accessories that can be attached to the basic term insurance plan you choose to level up the protection. Choosing the right and relevant rider is very important to make your term insurance policy more effective. A rider is coverage that comes for aid on an occurrence of a specifically mentioned event. The rider coverage offers benefits as add-ons on the basic term insurance plan you choose.

What are the different S?

The decision to include riders in your basic term insurance plan is optional, but it is a smart way to protect yourself and your family against certain risks. On the occurrence of such an event, you or your family will receive an additional amount on the basic sum assured of the chosen term insurance policy.

Here are some of the riders that are offered by various insurance companies. 

• Term Insurance Rider – This rider lets you increase the risk cover that you get under a term insurance policy. Adding this rider to your basic term insurance plan is very easy as it comes with a minimum extra amount on the basic premium charges that you pay towards the term insurance policy. The insurance company usually pays either a lump sum payout or monthly payouts.
• Critical Illness Rider – If you have any kind of family history for a specific disease like heart disease, cancer, diabetes, etc., then it is wise to opt for a critical illness rider. This will provide you with financial aid for the treatment in case you get the same health issue.
• Accidental Disability or Income Benefit Rider – If you are a breadwinner in your family, then this rider is a way to ensure that your family’s financial health remains undisturbed in case you suffer any disability in any kind of accident.
• Waiver of Premium Rider – If by any chance you are not able to pay insurance premiums, then the insurance company grants a grace period. If you fail to pay premiums during the grace period as well, then the policy will collapse. But if you have opted for Waiver for Premium rider, then your term insurance policy will not collapse even if you fail to pay the premiums.
• Women Critical Illness Rider – This rider ensures to provide coverage for the treatment of critical illnesses suffered by an insured woman like cancer, cardiac arrest, stroke, open-chest bypass surgery, etc.
• Accidental Death Benefit Rider – This rider offers financial aid to the dependent members of the insured in case of his/her accidental death.

How to choose a term insurance rider? 

As mentioned above, insurance companies offer various riders to cover risks. If you want to get benefitted from the term insurance policy, then you should purchase a rider that is important and relevant to you. This means you must first consider the risks that you are exposed to while choosing the rider on term insurance. Also, choosing a rider comes with an extra amount on the basic premiums you pay towards the term insurance policy. Hence, you must not forget to consider the total amount of premiums as that should be feasible for you to pay. Last but not least, read all scheme documents carefully to understand and make a sound decision that you will not regret later as term insurance is one significant investment that you will make.