Insurance is the safety net that ensures financial protection for your loved ones in  case of unforeseen circumstances. Getting insured is not a choice; it’s your way of making sure that your loved ones can live worry-free, if you are not around. If you haven’t signed up for term insurance yet, or are in the process of signing up; you’ll be probed with choices for a rider. Rider? Yes, you may have heard about it, probably know it or you are curious to learn and know. Let’s delve further. 

In simple terms, when you sign up for an insurance term policy, the insurance company offers you extra additions to your existing policy. These additions are not necessary. But given life is unpredictable and so is time, the rider can prove beneficial. So, how do you select a rider? What should be considered before checking the box? Read on to find out.

A rider can be added to your term insurance policy. You can tailor your policy to include these optional benefits. Riders provide added financial security and mental satisfaction. You have to pay a little extra now, to avail its benefits later.

Are riders charged separately? How much?

Yes. Given they are like a customized topping, you choose to suit your taste bud. You need to pay additionally for the extra benefit. The cost of adding a rider depends on what riders you’ve chosen and the level of risk. Your financial planner can guide you in determining if the rider is worth an extra pay. 

Types of rider covers on term insurance:

1) Cover For Death By Accidents 

This rider will provide your loved ones with a pay-out equal to the sum insured amount plus rider cover in case of early death by accident. 

2) Critical Illness 

Most policies provide coverage for critical illnesses such as cancer, heart attack, and kidney treatment. The critical illness cover will help pay for treatments in case you contract any of these diseases.

3) Terminal Illness Rider

Under this rider cover, the insurance company is liable to pay only if you’ve contracted a terminal illness and are battling an unavoidable death within a few months to a year.

The insuring company will process the claim and rider coverage pay-out to the nominee.

4) Premium Waiver Rider

Premium waivers are riders under which you will not have to pay the premium for the remaining tenure of the term policy. When and how is this applicable? There are 2 types of premium waivers.

 A) In case of a disability 

In an unfortunate event of permanent disability, as a policyholder, with a premium waiver for disability, you can claim exemption from payment of premiums. This will not affect your policy tenure or assured sum coverage.

 B) In case of critical illness 

If you meet with a critical illness, if you have a premium waiver rider, you can avail an exemption from paying premiums for the rest of the insurance policy duration. 

5) Income Benefit Rider

If you are a sole earner in your family, this rider can be beneficial. In case of sudden death, your family or nominees will be paid the sum assured plus monthly rider coverage like an income/salary. The pay-out will be processed as per your policy tenure.

Are riders an unworthy addition or a necessary add-on for you? Consult your trusted financial planner, to see if your insurance requirements should have a rider and which rider you should choose.