Life Insurance Riders

Riders are add-on option that can be added to a basic life insurance policy to give Additional coverage to the policy holders. Riders can be added to both linked and non-linked life insurance policy on the payment of extra premium. Generally, you have to choose the riders at the time of taking the basic insurance policy but some insurer also allows to add rider at later. Tax benefit on premium payment for riders is similar to premium payment for the basic life insurance policy. Riders are only added to the basic life insurance policy and you can not take the rider coverage separately.

Different types of Riders are as follows:

  • Accidental Death/Permanent Disability Benefit Rider: It covers the risk of death or permanent disability as a result of an accident by payment of benefits periodically, waiver of future premium etc.
  • Critical Illness Rider: This rider gives benefits to the policy holder at the time of critical illness which is listed in the policy contract. The most critical illness that covered is Cancer, Heart Attack, Paralytic Stroke, Kidney Failure etc.
  • Term Rider: This rider provides for payment of additional benefit on death over and above what the basic policy covers.
  • Waiver of Premium: If any contingency such as death, disability etc. has happened with the policy holder then this rider provides the facility of waiver of future premium.
  • Major surgical Assistance benefit: This rider gives financial help at the time of medical emergencies that requires surgery.
  • Guaranteed Insurability Rider: The rider allows the insured to increase the insurance cover without further medical examination regardless of the state of health at that time according to the terms and conditions of the policy.