Learning About Various Insurance Riders and their Advantages

25-August-2021 |

Insurance is becoming prominent in recent times. People have recognized the importance of financial security and the necessity for planning it early on in their lives. Uncertainties in the global economy have created a scenario wherein even a strategic plan might fail. However, it is our responsibility to consider our family’s financial protection important at all stages in life, even if we are not around. The basic insurance plan may not satisfy all the requirements of an individual. Insurance companies thus offer several insurance rider# types to allow policyholders to customize their plans and reap maximum benefits. Here we will discuss different riders# and their advantages.

Why are riders# important?

Riders have definite advantages. Attaching riders enhances the offering under a basic insurance policy and provides additional coverage. They offer extended risk protection. Here are a few important reasons why rider options are necessary. 


  • Every rider has a specific benefit. As riders are available separately, one can buy a basic plan and add additional riders to satisfy the needs. Check the rider quotes before you make a wise decision.

  • On a comparative scale, the cost of riders is lower than if you have bought a separate plan. If an individual cannot afford to buy separate policies, riders are an ideal choice.

  • In a basic life insurance policy, you will get life coverage to protect your family’s financial requirements. However, if you get a critical illness or permanent disability, you cannot afford to accumulate the sum assured by paying the premiums as you did. Riders# will be a solution in such cases.


In the current world, people prefer a complete plan with all the necessary benefits. An ideal product is one with a life cover, additional benefits as riders and also investment benefits. They are considered important for satisfying minimal financial protection and preparing for long-term goals as well. Life Insurance offers many such plans.

Unit Linked Insurance Plan is an example. The premium paid for the plan is used for dual benefits. One part of the premium is used to provide life cover while the other is invested. You can buy equity, debt or even hybrid funds. The returns are market-linked, and the benefits accrue accordingly. In addition, insurers provide add-on rider benefits to enhance the ULIP plan. Here are the different types of riders.


Types of Riders#

Knowledge about riders, their applicability and benefits are necessary to opt for the right choice. There are different types of riders serving specific benefits. We shall look into the specific types of insurance rider options and their benefits here:


  1. Accidental death benefit rider#: A basic plan covers natural death predominantly. The accidental death benefit rider will provide the sum assured for the insured person in the event of unexpected death due to an accident. This rider is applicable if the death occurs in the policy term. Tax* benefits remain intact even if the rider options are availed. 

  2. Total and permanent disability rider#: The rider sum assured is payable as a lump sum or as an income or the combination of both if the policyholder becomes permanently disabled due to an unexpected accident, provided the accident happens in the policy duration. It is similar to the accidental death rider. However, the death aspect in the accident is not covered in this policy rider. 

  3. Critical illness rider#: In case of a critical illness rider, the sum assured becomes payable when the policyholder is diagnosed with a critical illness. The kinds of illnesses and the conditions involved, along with the list of acceptable illnesses, are quite extensive. Some of the major illnesses accepted are cancer, heart transplant, brain tumour, blindness, deafness, kidney failure, Alzheimer’s disease, Parkinson’s disease etc. Hospital medical examination report is mandatory and relevant for opting this rider.

  4. Return of premium rider#: This rider can be used to avail all the rider premiums paid as a refund when no eventualities occur during the policy term period. The total premiums less the amount paid during the policy term towards other riders will be provided by the insurer at the end of the policy term before maturity. 

  5. Terminal illness rider#: In the case of a terminal illness rider, the sum assured becomes payable when a terminal illness is diagnosed, or early death occurs for the policyholder.

  6. Waiver of premium rider#: This rider ensures the benefit of life insurance; the sum assured remains intact while waiving future premium payments. It mainly happens if the insured person is affected due to an unforeseen incident leading to death or any difficult medical condition such as a total and permanent disability. The premium payments will be waived off, and the payment considered extra for the waiver of premium rider will be deducted for future premiums. However, specific terms and conditions are attached to these rider plans. 

  7. Hospitalization Benefit Rider#: This rider covers hospitalization expenses including that of ICU for all causes. A fixed payout as a percentage of the insured amount will be paid.


You can customize the insurance plan based on the required rider# options. Therefore, it can help you when you are in utmost need of financial assistance.

Tata AIA life insurance also offers a range of attractive rider# options and benefits with the life insurance plans. The linked riders Tata AIA Life ULIPs come with a choice of linked riders to further enhance the benefits and coverage. Our riders also ensure protection for upto two partners of the life assured in case of death, disability, or illness by providing life-time tax free income till either of them survives or reach age 100.

You can choose from the following ULIP riders:



Get in touch with us today for ULIP or rider quotes.


We have seen the different riders# that can enhance the benefits of insurance to avail maximum benefits and suffice the personal financial requirements. However, choosing the right rider# is quite important. We have to consider the probability of getting illness and the risk associated with it, the affordable premium budget, the extent to which our families require financial protection expenses and the long-term goals.

Make smart decisions based on these aspects and have extended financial protection to the greatest advantage!


Need help to choose the right plan?


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  • Insurance cover is available under the product.

  • The products are underwritten by Tata AIA Life Insurance Company Ltd.

  • The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.

  • For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.

  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.

  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.

  • * Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.



  • Past performance is not indicative of future performance.

  • All investments made by the Company are subject to market risks. The Company does not guarantee any assured returns. The investment income and price may go down as well as up depending on several factors influencing the market.

  • Please make your own independent decision after consulting your financial or other professional advisor.

  • #Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums, and exclusions under the Rider, please contact Tata AIA Life's Insurance Advisor/ branch