Life insurance is usually availed to provide financial protection to our loved ones. However, it is also a truth that no any life insurance plan fulfils all your needs. Every plan has, on one or the other hand, at least one drawback for which we think that the specific life insurance policy is not suitable. Considering the needs of the customers and the unavailability of the particular features in the policy, the life insurance companies have introduced several riders that you can opt for with the desired plan.
People who look at the life insurance policy as just a life coverage, often buy term insurance for the sake of providing adequate money to their loved ones if any uncertainty happens with them. We all know that term insurance does not provide maturity benefits; furthermore, there are a few more factors that are not considered under a term plan. To avail coverage against particular events, you have an option to buying a term insurance rider. Following are the popular term insurance riders that people often choose along with the term plan.
Accidental Death Benefit
In case of accidental death, the nominees of the life insured are entitled to get the benefits irrespective of whether the event is already covered in the policy or not. Some insurance companies may not include accidental death benefits as per their company policies. The people who have a high risk of being involved in such events can opt for this ridder.
Many term plans do not cover critical illnesses; or even if they do, the chances of getting cover against a specific critical illness are meagre. If you are suffering through any critical illness, you must opt for the rider that protects you against the particular disease.
Waiver of Premium
Due to any reason, if you are unable to pay the premium of the term plan you have purchased, this rider waives off all the pending premiums of the term plan and continues the policy till the maturity.
Partial or Permanent Disability
Sometimes, accidents may result in partial or permanent disability. Since term plans pay only death benefits, the physical disability rider will help you get some money in order to cover the financial damage and loss of income.
This rider provides additional income, apart from the regular term plan death benefits for a defined period.
Above given are the most popular term insurance riders that are purchased in addition to the regular term plan. It is always advised to understand the working of every rider before buying, because it may result into additional premium unnecessarily.