5 Reasons Why You Must Add Riders# to your Life Insurance
Term insurance plans are a great way to get ample life insurance cover and save for retirement. Although these plans come with several benefits, did you know there is more to the term plan you have purchased? You can supplement your term plan. There is a feature known as riders or add-ons, which are not part of the basic insurance plan but can be added to the plan based on individual requirements.
While these days you can easily purchase an affordable online term insurance that helps you get a life cover, you should always be well-informed of the benefits and the supplements before making the final decision. Let us explore what these additional features (riders) are, why they should be added, and how you can benefit from them.
What Are Term Insurance Riders#/Add-ons?
These are the extra provisions on top of the basic insurance policy, which can be added to enhance your term insurance cover and various associated benefits. Sometimes, the riders can also give you cover for additional situations that have not been included in your base plan. The good part is you can also avail additional tax* benefits for the extra premiums you will pay for the riders.
Why Should You Consider Adding a Rider# to Your Policy?
You can consider term insurance riders or add-ons similar to the seat belt inside a car. Though the car has a solid build and protects you every day, seat belts enhance the protection and can come in really handy when a problem arises. There are various benefits of riders in insurance that enhance it or act as an add-on. These are:
At the time of requirement, the sum insured often seems less. When a critical illness strikes or there is an accident, a lot of effort is required at the hospital, with multiple visits, procedures, and treatments. The process is financially as well as emotionally draining. The extra support in such situations always comes in handy.
To understand this better, consider this example:
An additional rider works by supplementing the base cover. If your base sum is ₹ 1 crore, you can add a rider to increase it by 25%, and your new insurance cover will be ₹ 1.25 crore.
Additional Benefits Covering More Scenarios
Some critical or terminal illnesses, disability due to accidents, or certain other scenarios might not be part of the basic term plan. However, they can be added to the insurance policy through riders. Usually, terminal or critical illness benefits can be covered in addition to the overall insurance cover, promising better protection.
Multiple Plans to Manage
While riders work in tandem with your basic policy and can be bought with your first purchase or on a policy’s anniversary, it is best to buy them when you finalize the policy during the initial purchase. This will reduce the hassle of keeping track of the riders, policy periods, and different premiums. You will have to pay a single consolidated premium.
In short, buying a rider works like buying an additional policy, but adding a rider is cost-effective and hassle-free.
Some riders might also add child education support and certain other benefits to the basic term plan. This is particularly helpful in case of the unfortunate death of a family’s primary provider. It supports policyholders' families.
Situations change dramatically when you meet with an accident or are hospitalized. When the time to claim insurance arrives, there is usually a critical situation. It could be due to hospitalization, untimely death, or a critical illness. All these conditions require dedicated efforts and attention. If the policyholder is the patient, there might be a financial crunch because you will likely not receive a regular salary during this period. You can avail of premium waiver benefits under such a scenario. Thus, you benefit from the insurance policy without worrying about the policy lapsing due to non-payment of premium.
Benefits of Riders#
Tata AIA Life Insurance offers various riders along with multiple online term insurance plans. You can buy term insurance easily online. You can include riders when purchasing the term plan online, optimizing your policy as per requirements. These additional riders can be saviors in times of need. Some of the additional benefits these riders offered along with Tata AIA Life Insurance’s term plan are:
Non-Linked Comprehensive Health Rider (UIN: 110B031V02) can add a comprehensive health cover against various illnesses such as disability and hospitalization, and critical illnesses, such as cancer, kidney failure, stroke, and heart attack (could be major or minor).
Non-Linked Comprehensive Protection Rider (UIN: 110B033V02) typically enhances coverage for various unfortunate events causing sudden risks, such as disability due to accident, several critical or terminal illnesses, and death.
Accidental Death and Dismemberment (Long Scale) (ADDL) Linked (UIN: 110B028V03), this rider enhances cover for untimely death or dismemberment of the insured. Meaning, if the policyholder suffers severe dismemberment, such as major burn wounds or loss of bodily functions in an accident, they will be covered under this rider. In case of death, the sum assured is payable in addition to the basic cover.