Recently when taking a new life insurance policy, I was interested in adding the critical illness rider, however the agent told me that I could not add it beyond a sum. Is this true?
Deepak Kukreja, Delhi
Yes, your agent has provided you the right information. As mandated by IRDAI rules, the total rider premium under all riders put together cannot exceed 30 per cent of the base plan premium. Also, in case of term plans, premium under health riders cannot exceed 100 per cent of the base plan premium. Moreover, the tenure of the rider cannot exceed the term of the base policy. Even the sum assured of the rider cannot exceed the sum assured of the primary policy. Likewise, any conditions relating to the term of the rider, age at entry and sum assured of each rider will also depend on the conditions of the base policy it is attached to. Lastly, rider benefits will stop on the maturity of the policy or when the policyholder achieves the age of 65, whichever happens earlier.
