Top 3 Riders You Must Add to Your Insurance Policy 

25-August-2021 |

We always enjoy a little something extra. Ice-creams with extra sprinkles, an extra discount of ₹500 on our next purchase, or extra leg-space in our car. When this fondness of seeking something ‘extra’ can be replicated with the purchase of life insurance, there is no reason to not jump on the offer. An insurance rider# is just the additional element that you need in your insurance cover.

Your basic life insurance policy comes with a range of optional riders to enhance the financial security of your loved ones in your absence. These riders can be purchased at a slightly additional life insurance policy premium to address your requirements. Before analysing what would be a suitable rider based on your monetary needs, it is important to know what exactly is an insurance rider. 


What are Insurance Riders#?

A life insurance policy is purchased to provide financial protection in your absence to your loved ones. It becomes an especially important investment if an individual is the sole breadwinner of the family with financial dependents such as children, a spouse, or senior parents to look after. To address the monetary requirements of the family, sometimes, the basic insurance cover is not enough. This is where an insurance rider comes into play.

Insurance riders are a modification to your term plan that provides additional coverage. They make a life insurance policy robust by extending the borders of the coverage to include unfortunate eventualities aside from the finality of the policyholder’s demise. There are different types of riders in insurance to address the unique financial needs of each individual. Insurance seekers can avail themselves of these added benefits to their life cover with the payment of a slightly higher life insurance policy premium.

Every insurance rider comes with conditions mentioned in the policy document. If the insurance holder passes away owing to the conditions stated in the document, the nominees receive an additional benefit over and above the basic sum assured under their regular term insurance.  


Top 3 Riders in Insurance Policy

Insurance providers today have come up with a host of term plan add-ons to suit the needs of insurance-seekers. However, the following riders are the most common options that have been gaining popularity:-


1. Waiver of Premium Rider

Every responsible earner purchases life insurance to ensure the financial security of their loved ones in their absence. For this service, the insurance holder is expected to pay regular premiums to the insurance company.

However, have you ever wondered what would happen to your policy if, due to a severe injury or a critical ailment, you were unable to pay the premiums?

The non-payment of a life insurance policy premium causes your policy to lapse, leaving your family in a financially vulnerable situation if something were to happen to you. This is when a waiver of premium rider can come to your rescue.

The waiver of premium rider is the best life insurance rider for managing scenarios that makes insurance holders unable to pay their premiums. This rider waives off all future premiums while keeping the policy active if an accident renders you disabled. Following are the scenarios that will activate the waiver of premium rider:-

  • If the policyholder has been rendered disabled for more than six months

  • If the policyholder has been diagnosed with a critical illness such as cancer, heart attack, etc.

This rider comes with tax* benefits under Section 80 (D) as well as Section 10 (10D) of the Indian Income Tax Act, 1961.

2. Critical Illness Rider

Our lifestyles have witnessed a drastic change as we take progressive steps towards development. We endure long work hours and manage stress regularly to provide for our loved ones and ensure a financially stable future for ourselves. This can adversely impact our health in the long run.

As investment in term insurance is a crucial element, several financial advisors recommend enhancing your protection with a critical illness cover. This is because the diagnosis of a critical illness can result in severe losses to your savings. Moreover, the rising cost of hospitalisations and medical treatments add to the stress of dealing with a critical illness.

With the purchase of a critical illness rider, if the insured is diagnosed with a critical illness that is mentioned in the policy, he/she is eligible to receive a lump sum amount to pay for the medical expenses. This supplements the patient with a much-required cash flow at the time of recovery.

This is the best life insurance rider if you want to ensure that a critical illness does not taint your savings and leave your family in a compromising scenario so you can focus on a speedy recovery.

3. Accidental Death and Disability Rider

You cannot avoid commuting from one place to another, and despite being a cautious driver, accidents can occur without any fault of yours. Sometimes these accidents result in partial or permanent disability, which can affect your ability to earn. However, a disability rider can act as an income supplement in the subsequent years so that you can continue to live comfortably.

On the other hand, if the policyholder passes away due to an accident, the accidental benefit rider pays the family an additional amount over and above the death benefit of the basic term insurance policy. Considering the rising number of road accidents, disability and accidental benefit rider is the best life insurance rider especially for individuals who have to travel frequently for work.

The term insurance plans by Tata AIA Life Insurance come with different rider options to provide comprehensive financial safety and assist you in protecting the needs of your loved ones. Moreover, Tata AIA premium payment options are flexible to ease the payment process for insurance holders.  


To Conclude

Before purchasing insurance riders, it is important to acquaint yourself with the different types of riders in insurance and the associated benefits and inclusions and exclusions of each to make an informed purchase. It is crucial to assess the need for every add-on cover to analyse whether it would be truly beneficial for you.


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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 guaranteed issuance plans, and they 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.

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

  • *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.