Customise your life insurance plans with the right riders and protect the present and future financial needs of your family.
When it comes to life insurance, just like with other important decisions in life, “one size certainly doesn’t fit all.”
For instance, the coverage requirement of a young father with kids in school maybe quite different from the needs of bachelors or newly married couples.
Thus, you should focus on the specific financial requirements of your family. The coverage you select must offer financial stability to your dependents – like paying home loans, helping them maintain their current lifestyle, and fulfil future aspirations like higher education, a child’s marriage, and more.
Personalize the Term Plan to Suit the Financial Needs of your Family Best
Among various life insurance policies, term plans are the simplest way to secure the financial future of your family. The primary purpose of a term plan is to provide your dependents with a lump sum amount, so that they can avoid a financial crisis, in the absence of the primary breadwinner.
Apart from the standard death benefit, term plans offer additional benefits in the form of riders. Riders help individuals customise their term plans to achieve their unique financial goals.
What Are Riders And How To Choose One?
Riders are additional benefits offered by a term plan and serve to increase the coverage of the insurance plan. Policyholders can avail rider benefits by paying an additional premium. Riders are optional, and policyholders can choose the right ones based on their individual financial needs.
The type of riders, costs, and benefits vary from one insurance provider to another. While choosing a term plan, make sure to check out the available riders that the policy qualifies for and pick the ones that best suit the financial needs of your family.
Popular Term Insurance Riders
Let’s take a look at some of the standard riders available along with term plans:
- Accidental Death Benefit/Permanent Disability Rider
An accident of a family member is both an emotional and financial burden. With the accidental death benefit rider, your dependents receive an additional sum (apart from the death benefit) if the policyholder passes away in an accident. The permanent disability rider provides the surviving policyholder with an additional lump sum if he is disabled due to an accident.
- Critical Illness Rider
Critical illnesses require expensive medical treatment that may not be covered under your regular health insurance plan. With the critical illness rider, the policyholder receives lumpsum payments or periodic payouts, if diagnosed with a specified critical illness.
- Waiver of Premium Rider
As the name implies, this rider waives off all future premiums of the policyholder, if he is diagnosed with a critical illness or suffers dismemberment due to an accident. It ensures that the policy continues to remain active, even when the policyholder loses his income due to an illness or accident.
Besides these common riders, a term insurance policy offers several other options like a cover that increases with time (ideal for young adults), a cover that decreases with time (suitable for retirees), and so on.
Customise your Term Plan with Riders to Meet your Specific Financial Needs
Before you purchase a term plan, make sure to evaluate all the riders offered – check the benefits, additional premium costs, inclusions, and exclusions – and make an informed choice that best suits the current and future financial needs of your family.