Which Riders# to Choose for Your Term Insurance Plan?

21-June-2021 |

The pandemic has made the future unpredictable and unsettled. Ensuring the safety of your loved ones has never been more critical. This is where term insurance plans gain importance! It is the simplest way to protect your family. It is an affordable form of life insurance that allows you to avail of high insurance coverage at reasonable costs. This plan pays if an insured dies within the policy tenure. Most term insurance plans do not pay anything if you survive the policy tenure. 

Most life insurance companies offer term plans, and one of the leading companies in this industry is Tata AIA Term Life Insurance Ideally, it would help if you bought a term plan as soon as you start earning so that your premiums are low. You can also choose to enhance your coverage with additional protection in term plans with riders. Riders enhance the term plan benefits.


What are Term Insurance Plan Riders#?

When you buy a protective shield for your family in the form of a term insurance plan, you secure their future financially. However, you may often feel that you can do more to enhance this security cover. This is where term insurance riders come into play. Term insurance riders are extra benefits that can be added over and above your standard insurance policy. You can buy term riders/add-ons along with the base policy by paying an additional amount. They help increase the term plan benefits.

If you have also been wondering, "Should I add life insurance riders with term insurance?" The answer is yes, you should. Most life insurance term plans allow customers to opt for riders either while buying a new policy or during the tenure of the policy.


What are the Different Kinds of Term Insurance Riders#Available?


To enhance the coverage of your basic life insurance policy, you can purchase the following riders with your Tata AIA Life Term Insurance Plan:

  1. Accidental Death and Dismemberment (Long Scale) Rider#

    Sometimes an unfortunate accident can lead to disability or even death. If the primary provider dies, the surviving family will face a financial crisis. By opting for an accidental death and dismemberment (long scale) rider, you can ensure that your loved ones receive an additional benefit.

  2. Critical Illness Rider#

    If you, the insured member, are diagnosed with any of the specified critical illnesses, you will receive a payout. Generally, diseases like cancer, heart attack, kidney failure, paralytic stroke, and coronary artery bypass surgery (CABG) are covered.


    Tip: Opt for this life insurance rider if you have a family history of such illnesses.

  3. Term Rider#

    This rider increases the overall coverage. So, an extra amount is paid to the nominee in the case of the insured’s death. This amount is generally equal to the sum assured of the base term plan.


  5. Family Income Benefit Rider#

    This rider helps your loved ones cope with an insured’s death or disability. When purchasing this rider, you will have to specify the number of years you want the family to receive a steady income.


  7. Waiver of Premium

    A family's financial prosperity can be significantly impaired in case the primary provider suffers a disability. The inability to pay the upcoming premium will soon result in the lapse of the life insurance term plan. When you opt for a waiver of premium, in the case of an accidental disability, all the future premiums are waived, but the policy continues.


Benefits of Adding a Term Insurance Rider# to Your Insurance Policy


When you opt for a rider in a term policy, there is an increase in the term plan benefits. By paying a minimal price, you can afford to give your loved ones much better coverage.


Let us take an example. Rahul Varma, aged 38, is a software engineer with two children aged 12 and 8 and a 35-year-old wife, Vanoita, a homemaker. Rahul meets with an untimely, unfortunate death in a car accident. He had a term plan of ₹ 1 crore and an accidental death benefit rider of ₹ 20 lakhs. After he died, Vanoita received ₹ 1 crore as the death benefit, and an additional amount of ₹ 20 lakhs as Rahul's death was due to an accident. This is the added benefit of opting for the accidental death benefit rider.

Choosing the Best Term Insurance Rider# with your existing plan

Riders serve specific, definite purposes, so it becomes essential that you select the one that suits your insurance needs. However, you first need to understand how each rider works and what it offers. Keep in mind:



Once you shortlist the riders you are interested in, you need to assess your life risks. This will help you select the corresponding riders. For example, if your family members have been diagnosed with terminal illnesses in the past, you may want to opt for a critical illness rider. If you are in a dangerous profession or a position where you travel too much, you can opt for an accidental death and dismemberment rider. 


A life insurance term insurance policy is a simple yet effective way to cover risk and secure the future of your loved ones. And when you opt for a rider, you further enhance the efficacy of your term policy. By paying a little extra, you can get this financial protection tool that helps you financially secure your family in the event of an illness or disability you may suffer. With Tata AIA Life Insurance, you can opt for a rider of your choice. Choosing an appropriate rider allows you peace of mind and comprehensive coverage. 




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 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

  • #Riders are not mandatory and are available for a nominal extra cost. For more details on the benefits, premiums and exclusions under the riders please refer to the Rider Brochure or contact our Insurance Advisor or visit our nearest branch office