Why your term policy is incomplete without a rider?


Terms plans are pure protection plans, which aim to look after the financial well-being of your family in your absence. Although it can act as a safety net for your whole family, pure term insurance plans might fail to cover unannounced emergencies, such as loss of income, critical illness, permanent or temporary disability, and so on. To cover you from such unfortunate events apart from death, term insurance riders can play a critical role.

Before you choose riders for your term insurance policy to strengthen your base term policy, let’s understand the most common riders provided by many life insurance companies:

  1. Critical illness rider

Old age can have a significant impact on your health. When you grow old, you might be prone to severe diseases or critical illnesses, such as cancer, stroke, heart attacks, and so on. Due to the severity of such illnesses, it can be imperative to treat them on time before they lead to life-threatening consequences. However, if you do not have adequate funds to cure critical illnesses, you might avoid medical treatments.

If you have a critical illness rider along with your term insurance plans, the medical treatments and expenses can be taken care of with ease. With a critical illness rider, you can receive financial backup from your insurer when you are diagnosed with one of the critical illnesses. However, see to it that you read the terms and conditions carefully after you purchase a critical illness rider to identify the number of diseases covered under it.

  1. Accidental death rider

The rising uncertainty can lead to an increase in either medical emergencies or unannounced accidents. According to a survey, over 86% of the people in India believe that life is uncertain. If you are not prepared financially to tackle with unannounced contingencies that arise at your doorstep, you might create a hole in your pocket.

You might lose your life in case you’re involved in any type of accident, such as a car crash or losing your balance when you’re riding a motorcycle at high speeds. Whatever the case, having an accidental death rider under such a scenario can play a significant role. When you buy an accidental death rider, your insurer can compensate your loss to the members of your family in the form of a financial pay-out along with the sum assured value. This is one of the many term insurance benefits.

  1. Physical disability rider

In an accident, you can either permanently or temporarily damage yourself. Moreover, it can lead to loss of your crucial body parts, such as limbs, arms, eyes, and so on that can make you physically disabled. If you have term insurance under such a scenario, you might struggle to pay the premium within a stipulated time due to your physical disability. When your insurer does not receive the regular flow of premium, your term policy can be ceased.

During a physical disability, you should inform your insurer about the intensity of the situation. On doing so, your insurer can either waive the premium off or offer you an additional pay-out to help you get through with it. However, see to it that you purchase a term policy with a physical disability cover to avoid the termination of your policy under such a scenario.

  1. Waiver of premium rider

The premium can be one of the most crucial components of every traditional insurance policy. Since a term policy is a sub-subject of traditional life insurance, the premium amount should be paid regularly based on the selected duration. Under term insurance plans, you can pay the premium amount annually, half-yearly, monthly, and quarterly.

There can be unfortunate events, such as loss of income, physical disability, etc. that might make it difficult for you to pay the premium. Under such a scenario, if you struggle to make the timely premium payments, your insurer can waive your premium. When your insurer waives the premium during a difficulty, you can reap the benefits of your term policy without any financial burden of premium payment.

In a nutshell, term insurance plans are crucial for the safety of your loved ones. However, riders can add value to your original term policy. Therefore, consider your needs and opt for the relevant riders on top of your term insurance plan.