Life insurance riders enhance the financial benefit offered in term insurance plans. The life cover will financially protect your family’s future in your absence. And the rider will provide an additional fund apart from the life cover in case of specific scenarios. However, choosing the right life insurance riders will provide the necessary financial support while securing your family’s future. Here are the 5 best rider options you can utilise in your term plan.

5 Best Riders to Consider While You Buy a Term Plan

Here are the 5 best rider options you can utilise in your term plan:

• Accidental disability rider – The accidental disability rider will cover the risk associated with death or disability due to an accident. It will provide an additional fund apart from the term policy sum assured. Insurers provide customisable features that help enhance the financial advantage.

For example, the Tata AIA term insurance will provide the option to receive the rider benefit as a lump sum, income for a defined period, income until the partner’s survival, or as a waiver of premium. You can purchase it during policy inception or policy renewal. The term insurance with accidental disability rider should be preferable if you are young at driving and experiencing adventures that can increase the probability of an accident on the road.

• Waiver of premium rider – The waiver of premium rider will provide the option to waive off paying future premiums for the proposer. It can be availed of during scenarios such as death, total and permanent disability because of an accident, etc. The scenarios and the applicability are based on the individual insurance provider’s terms and conditions. Purchasing such term insurance riders can also help you benefit from a tax benefit under Section 80D of the Income Tax Act, 1961.
• Accidental death rider – The accidental death rider of the term insurance plan will provide a lump sum benefit in case of death due to an accident. The benefits might increase or double due to certain types of accidental deaths. Also, in case of disability, burns or dismemberment, the insurance rider will ascertain a portion of the sum assured.
• Critical illness rider – The critical illness rider of the term plan will provide the additional fund if you get affected due to a critical illness such as cancer. You can utilise the funds to pay for the hospitalisation and other medical expenses. You can avail of the benefit as a regular income and pay for the expenses periodically.

For instance, if your family has a history of members getting affected due to cancer, you can avail of the rider benefit as a regular income and pay for the regular chemotherapy treatments.

• Income Benefit rider – It is a rider that can benefit policyholders who might have a dependent family even after their death at an older age. It will provide an additional income after your death for the next five or ten years based on the term policy conditions.

Conclusion

Term plan riders can enhance the financial benefit during specific scenarios. You can customise the life insurance rider to your advantage based on your income and family’s financial needs. There are different life insurance riders, such as the accidental disability rider, critical illness rider, waiver of premium rider, etc. While you can avail of the rider benefits at an additional cost, it is certainly worth the investment in the long term. Also, you can purchase the rider during policy inception or renewal as you demand. However, staying invested through the term policy tenure is important to ascertain the term plan rider benefits!