Helpful Life Insurance Riders That Are Worth Buying
You can never tell what will happen in life. At any given time, life may surprise us. Although we try to be happy and live a long life, this philosophy cannot dispel the fact we must make preparations for the worst. At this time, life insurance plans comes in. Life insurance is a contract between the insured and the insurance company. Here, the insurer undertakes, upon your demise, to pay a lump sum amount to your beneficiaries (or heirs).
If you have dependents relying on you for support, it is important to have life insurance coverage. The Indian market for life insurance is expanding, and more and more people are realising how important it is. India was the 10th largest insurance market in the world in 2022, according to a survey from the Insurance Regulatory and Development Authority of India (IRDAI). It is expected to become the sixth largest in 2032. While life insurance policies themselves are a great assurance for the future, did you know that adding riders can enhance the coverage of your life insurance?
In this blog, we'll discuss some of the most helpful life insurance riders that are worth buying. So, let's get started!
Guaranteed Insurability Rider
As you get older, your health needs become different, and so do your life insurance needs. You may have to increase your coverage to meet the growing demands of your family. However, as you get older, the risk of getting sick and having less health increases. This could result in higher premiums or denial of coverage altogether.
In such situations, a great addition to your insurance policy would be the Guaranteed Insurability Rider. This rider allows you to upgrade your coverage without a physical examination and without having to prove insurability. It is particularly beneficial for anyone who expects changes in his life- such as starting a family or purchasing a home. With the purchase of this rider, you can now guarantee yourself to be covered. This is true even if your health status changes.
Accidental Death Benefit Rider
Even though most life insurance plans specifically cover dying due to natural causes, not all of them extend benefits for accidental death. Fatal accidents are rare but unpredictable, so it's good to be prepared for such events.
What the Accidental Death Benefit Rider does is it provide an additional sum assured as a payment upon accidental death. This rider is especially suited for people working in areas with high accident rates or whose work requires working in hazardous conditions. By purchasing this rider, you can guarantee that your beneficiaries will receive an added assured sum upon your accidental death.
Waiver of Premium Rider
Paying premiums regularly is crucial to keep your life insurance policy in force. However, if you suffer from a disability or illness that prevents you from working, paying premiums can be challenging. If you default on your premium payments, your policy may lapse, and you may lose the coverage you need.
The Waiver of Premium Rider can be a lifesaver if you are looking for a life insurance for kids. If you become permanently disabled, this rider waives your future premiums, ensuring that your policy stays in force. This rider is especially useful for those who are the sole breadwinners of their families and can't afford to lose the coverage they need for the future of their kids and spouse.
Critical Illness Rider
With the rising incidence of critical illnesses, it's essential to be prepared for the high costs of treatment. While some health insurance policies cover certain critical illnesses, many are excluded, leaving individuals vulnerable.
The Critical Illness Rider is a great solution to this problem. It provides coverage for a wide range of critical illnesses not typically included in base policies. By purchasing this rider, you can ensure that you have the coverage you need to protect your savings in case of a critical illness.
Return of Premium Rider
If you're looking for a considerable return on your premium payments, you can consider purchasing the Return of Premium Rider. This rider reimburses the total premiums paid towards term insurance, minus taxes, upon policy maturity. This rider is a great option for those who want to get their premiums back at the end of the policy term.
Long-term Care Rider
In case you require care at a nursing home or in-home assistance, the Long-term Care Rider
provides monthly payments to cover such expenses. This rider is especially useful for those
who have a family history of chronic illnesses that require long-term care. By purchasing this
rider, you can ensure that you have the coverage you need to meet your long-term care
needs.
Family Income Benefit Rider
The primary objective of any life insurance policy is to ensure financial security for your family in case of your demise. The Family Income Benefit Rider facilitates this goal by providing a steady income stream to your family beneficiaries. By purchasing this rider, you can ensure that your family has a reliable source of income to meet their daily needs.
Conclusion
In conclusion, life insurance riders are a great way to enhance your life insurance coverage and protect your loved ones' financial future. By purchasing one or more of these riders, you can ensure that you have the coverage you need to meet your changing needs. So, don't wait any longer. Talk to your insurance agent today and choose the riders that are right for you.
FAQs
1. What is a life insurance rider?
A rider is an optional add-on to a life insurance policy that provides additional coverage or benefits for an extra cost.
2. What are some common life insurance riders?
Common riders include accidental death, disability income, critical illness, and long-term care riders.
3. Are life insurance riders worth the extra cost?
Riders can provide valuable coverage to your life insurance. Therefore, they are worth the extra cost.
