Riders you need to check while going for a term plan

So, you are planning to buy a term plan. But have you thought about adding a term rider to your plan? Certainly, buying a term insurance plan is a good decision as it protects your near-dear ones in case of an unwanted event. However, there are various untoward events which may result in financial loss. So, term riders give protection in such situations. In this way, cost effective riders let you make the most of your insurance protection plan.

What is a Rider?

Depending on his/her specific needs, one can customize term insurance plans with add-on/attachment called ‘rider’ to increase the benefits of the policy. One has to purchase this additional feature along with the basic policy. Term insurance is an insurance product that offers death benefit to the family of insured in case of sudden death of an insured person. When it comes to buying a term plan with extra benefits, people think it as it would be pricey. However, it is essential to understand term riders and complete information about it. Surely one will understand the importance of extra benefits that can strengthen an insurance plan just by paying few bucks more.

Let us have a look at a few of common riders that supplement the coverage in the policy.

• Critical Illness - Some diseases/health issues can make a person out of action temporarily or permanently. Due to such health complications, it becomes impossible for the affected person to continue work. The person also loses his earnings because these illnesses require higher medical expenses. Term riders prove to be beneficial here. By adding critical illness term rider, you can have protection from loss of earnings and financial burden of treatment. Stroke, Coronary artery bypass surgery, heart attack, paralysis, cancer, kidney failure, major organ transplant like pancreas, lung, heart or liver, etc. are some of the most common critical illnesses.
• Accidental Death Benefit Rider - This type of term rider offers additional sum assured to the nominee if the death of an insured person faces due to an accident. Remember, even if you don’t purchase this rider, you will get the basic sum assured. This term rider is only for the additional sum assured if the policyholder dies due to an accident.
• Premium Waiver Rider - as the name suggests the rider waives premium in case of disability. A person has to stop work after a disability. Thus, there are no earnings, and still one has to pay the insurance premium. However, by availing waiver of premium insurance term rider, the insured person does not need to pay insurance premiums further.

Different insurance companies offer various types of riders. One should look for a reliable and reputed insurance provider to avail the maximum benefits. Remember, although the term riders are beneficial and provide additional cover to your term insurance plan, it is essential to understand the concept and go through the policy brochure carefully. Invest a little time in finding more details about different riders and selecting appropriate riders that will prove beneficial for you and let you maximize your term insurance policy benefits.