Riders in Insurance Policy | Benefits & Types of Riders

What is Insurance Rider?

Additional coverage & benefits that are provided by the insurer on nominal additional premium are called as riders. Riders are sold separately by the insurer and these are added to your basic life, health insurance policy to get extra protection attached with them.

You take these riders according to your need. Premium of your policy increases according to the selected rider. The premium on the riders is lower than any of the specific policy you bought for the same cover.

Riders are fully available to cover the risk and do not give any maturity benefit. You are eligible to get a deduction up to Rs 1 lakh under Section 80C for premium on riders.

Different types of rider are as follows:

  • Waiver for premium: If you take this rider, you don’t require to pay premium if you become disabled to pay it from any type of accident.
  • Disability Income Rider: If you become disabled and can not able to work, then you will receive a regular income from your insurer. Meaning of disabled varies from company to company.
  • Critical Illness Rider: This rider pays you a specified lumpsum amount when you are suffering from the critical illness such as heart attack, Cancer, Condition of Organ Transplant etc.
  • Double Indemnity Rider: If you have bought this rider then insurer pays twice the amount of the policy if one dies accidentally. It is also referred as Accidental Death Rider.
  • Surgical Care Rider: This rider provides the expenses of hospitalization for the necessary surgery.
  • Hospital Care Rider: It provides daily cash benefit in the case of hospitalization for the treatment of any illness or injury.