Friday, 12 February 2016

5 Riders / Add-on s That You Must Have in Your Term Insurance Plan

Posted by MyInvestmentsPub
People now-a-days slowly understanding the importance of Term Insurance plan and the necessity of holding a Term plan for sufficient sum assurance. Yes, Term Insurance plan is the cheapest and most efficient form of insuring one's life. Most of us assume that the Term Insurance policy pay the sum assured when the policy holder dies and it does not offer any other benefits like bonus or returns. This statement is partially correct. The basic Term Insurance policy covers only when the policy holder dies. However, now-a-days the Term Policy is coming up with Riders to maximize the benefits of a Term Insurance Policy. What are these Riders? What benefits one can get from these Riders?

What Is Rider?


In simple words, the Rider is an attachment to the base Term policy that provide additional benefits on top of the Term Policy. These Riders add value to your Term policy. These Riders provide protection in some certain events which results in financial loss. Because of the importance of these untoward events, one should watch the Riders available to the Term Policy and should be tagged with suitable Riders based on his/her requirements.

5 Riders That You Must Have in Your Term Insurance Plan:

1. Critical Illness Rider:


This is the foremost important Rider that every policy holder should have into their Term policy. There are some illnesses or diseases due to which a person can lost his earning opportunity and need higher financial support for meeting the medical treatment. These kind of financial burden for treatment can be compensated by opting Critical Illness Rider. The common critical illnesses generally covered by this Rider is as follows:
  • Heart attack
  • Cancer
  • Paralysis
  • Coronary artery bypass surgery
  • Major organ transplant (e.g. heart, lung, liver, pancreas)
  • Stroke
  • Kidney failure 
However, the new generation Insurance companies are coming up with innovative Critical Illness Riders which includes life style diseases as well. One should carefully check the coverage the illnesses while choosing this Rider.

2. Accident disability Rider:


Now-a-days because of the vehicle density and lack of traffic awareness, accidents are increasing eventually and the probability of meeting with an accident is also increasing abnormally. Due to an accident, if the policy holder disabled like losing any part of the body and not able to earn the livelihood, this Accident Disability Rider would help you and your family for the prescribed tenure. The amount you get depends upon the disability severity. For total disability, you will get the full sum assured, and for partial disability you will get the partial sum assured. However, all the terms and conditions differs with the Insurance provider.

3. Premium Waiver Rider:


Assume a situation that you are not in a position to pay any future premiums due to disability or income loss, then your policy will expire and you will not get any benefit later when you die because due to non-payment of premium the policy expires and the cover stops. The Premium Waiver Rider would help you and your family in that scenarios. You no need to pay any further premiums to your Term policy and all your future premiums are waived off and your Term policy is still in force like always.

4. Income Benefit Rider


This rider is part of some policies and it’s mainly for the income generation after death of the policyholder. If this rider is present, the policy holder’s family gets supplementary income per year for 5-10 yrs along with regular Sum Assured. For example, 10% of Sum Assured for next 10 yrs will be received by the policy holder’s family.

5. Accelerated Death Benefit Rider:


This Rider is helpful when someone is suffering with terminal illness. In such situation the aggrieved family incurs heavy amount for the treatment of the patient. If the patient has taken the life insurance with the accelerated death benefit rider, the family will get a part of the sum assured in advance. This advance payment of the insurance cover can be very helpful in those critical days. The rider specifies how much sum assured would be available in advance. This is a low cost rider.

Conclusion:

The basic Term Insurance policy would not suffice all our Insurance needs in certain scenarios. Every one should check the above mentioned Riders and tag the necessary Riders based on their requirement. All the Riders are come with low cost and provide high benefits in an untoward events.

Have A Healthy and Insured Life!

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