Different types of riders for life insurance

People will go to any extent for their family’s wellbeing. They try their best to give them a good quality of life. However, what about their absence? This is where a life cover comes into the picture. As a member of a family, they can replace no individual. However, with the person gone, the lack of finances causes difficulty. There are different types of life insurance out there. Depending upon your needs, it is important to choose one. No matter what type of life insurance you choose, a component that you will come across is insurance riders. Read further to understand what are the different riders available with life insurance and how they can benefit you.

Meaning of insurance riders

Insurance riders, in simple terms, are add-ons to existing life insurance. It is like a provision that is added or modified to the existing life insurance as per the request of the policyholder. The riders usually provide additional covers, but at additional costs. You can use a life insurance calculator to determine your updated premium. Adding them to your life insurance expands your insurance cover. There are several types of riders, and depending upon your personal situation and choice, you should choose one or several amongst them.

Types of insurance riders

Here are the insurance riders that you can club with your life insurance to get the maximum coverage you desire:

Accidental death benefits rider

If you have opted for this rider, your nominee receives the benefits if the insurance company classifies your demise as an accidental death. However, it is a must that your policy and the rider should be active during that time. In such cases, your nominee will receive the basic sum assured and also the sum assured under accidental death rider. Most people who opt for this policy require additional cover, as they feel their existing insurance policy might not suffice in case of a sudden demise. 

Premium waiver benefit rider

An individual can opt for this waiver when they become disabled or injured for a sustainable period. Also, if the individual is no more and was assured under the policy, the insurer will waive the future premiums of the policy post the date of the accident. The rider also extends to permanent or partial disability. It is compulsory that life insurance, along with the premium rider of the individual, be active on the day of the disability or demise. A life insurance calculator estimates the premium you have to pay for the premium waiver benefit rider along with your base life insurance.

Critical illness rider

Nowadays, critical illnesses are more common than ever. Expenses towards the treatment of any critical illness can cause financial difficulties for most individuals. Hence, it is vital that an individual take a critical illness rider along with their life insurance. This ensures that any medical attention needed due to the diagnosis of a critical illness is not ignored or delayed because of monetary problems. Most critical illness riders include medical coverage for illnesses like stroke, cancer, kidney failure, paralysis, heart attack, and certain other terminal conditions. This rider ensures a person has a pre-determined amount they can access anytime if they are diagnosed with any of these illnesses. 

Income benefit rider

When the breadwinner of a family is gone, it can leave a huge financial toll on the family. A policyholder opts for an income benefit rider along with life insurance. This rider offers benefits to their family in case of the demise of the policyholder. The rider provides regular income to the family of the policyholder after the policyholder is no more. These payments are based on some percentage of the total sum assured. One should ensure that when they are buying this rider, the recurring amount of this benefit suffices to meet the monthly needs of their family. 

Partial and permanent disability rider

In case of any unforeseen event, a policyholder might suffer from a partial or permanent disability. The partial and permanent disability rider provides financial aid to the policyholder in case of such an event. It entitles the policyholder to staggered payments that are a certain percentage of the overall sum assured of the insurance policy. Most insurance companies offer 10% or more of the sum assured of the policy annually to the policyholder. This is with the view to compensate for losing regular income which may because of partial and permanent disability.