The basic objective of buying a life insurance policy for any consumer is to reduce the risk of dependents in the event of an unforeseen event in life. Most of the life insurance policies, term plans or traditional endowment plans do not prove to be helpful to the insured in situations like accident or illness. In such a situation, it can be made more effective by including the rider in the insurance policy according to your need.
The best way is to include a rider:-
If an insured becomes disabled in an accident and cannot pay the premium on time due to the impact on his income, then his purpose of taking the policy will be defeated. Similarly, a traditional life insurance policy will in no way help in paying the hefty hospital bills after illness or accident. To avoid these situations, if another policy is taken, then its cost and premium will also be higher. In such a situation, the best way for the insured is to include a rider. Almost all the insurance companies offer the option of adding a rider to the already running policy. The quality of the policy can be enhanced by choosing the right rider as per your requirement.
what are riders-
A rider is used to add additional features to a life insurance policy, which is completely optional. No insurance company gives it in conjunction with the basic policy. If a company sells it included with the basic insurance policy, it will provide additional facility or coverage on your basic sum assured. The rider does not come bundled with any insurance plan, term plan, endowment plan, money back plan or ULIP, rather it adapts the policy to suit the needs of the insured.
Different rider for every need-
Accidental Death Benefit: This rider provides additional sum assured to the life assured in case of loss of life in an accident. For example, if the policy has a sum assured of 25 lakhs and the rider is 10 lakhs, then the holder will get a total of Rs 35 lakhs.
Accidental Disable Benefit: This rider gives the sum assured amount to the insured even if he becomes disabled after an accident. Some insurance companies also offer the option of continuing the policy without premium.
Waiver of Premium: Under this rider, the insurance companies waive off the rider and the premium of the basic life insurance policy in case of total disability of the holder till the policy maturity.
WOP on CI : This rider waives off all premiums of rider and insurance in case of four critical diseases like cancer, open heart surgery, first heart attack and paralysis, while the coverage of both remains intact.
Income Benefit: If the insured becomes disabled in an accident, then his monthly income will also be affected. This rider pays the insured every month equal to one percent of the sum assured amount of his policy for 10 years.