The right topping

Choosing a life insurance policy has got a twist with add-ons, called riders, which can considerably increase the scope of the risk cover that you can take. If chosen well, riders can give you additional benefits and increase peace of mind; that if something goes wrong there’s a Plan B. The catch; however is that, you can add the rider only at the time of taking a new life insurance policy and not later. These come at an additional cost, which is miniscule compared to the supplementary benefits they provide.

The biggest advantage of riders is that the premium remains fixed for the entire tenure of the policy. Besides additional protection to help you meet specific requirements, they are affordable, as they come at a relatively lower price as compared to a standalone policy with similar benefits. Moreover, they are flexible with the way one can attach them to a policy and claim tax deductions on the premium paid towards a rider. So, choose the right rider to enhance your life insurance cover—qualitatively as well as quantitatively. Here is a list of riders that are generally available; however, these are not uniform across insurers.

Accidental death or permanent disability:

This rider covers the risk of death or permanent disability as a result of an accident. In case of death due to accident, this rider provides an additional amount of death benefit over and above what the basic policy provides. The quantum of the additional benefit paid out upon death due to accident depends on the sum assured chosen for the rider.

Term:

Similar to term insurance, this can be attached to a base life insurance policy to increase the risk cover on your life insurance policy at a nominal cost.

Waiver of premium:

Under this rider, the future premiums are waived off if the insured becomes permanently disabled or loses his or her income as a result of injury or illness, as mentioned in the policy contract.

Disability income benefit:

This rider will maintain for the period of disability that may arise due to an accident. The disability could be partial or total, permanent or temporary.

Critical illness: There are some illnesses slotted under the critical illness category such as stroke, heart ailment, cancer, organ transplant, etc. This rider pays off the sum on detection of such illnesses. It should not be confused with health insurance, as it does not pay for the treatment.

olmdesk@outlookindia.com