Why You Must Add a Rider to Your Term Plan?

2-August-2021 |

 A term insurance plan is the simplest form of life insurance that provides a financial safety net for your loved ones in times of need. A basic term insurance policy with a life insurance coverage that suits your needs plays an important role in protecting your family in case of financial contingencies.

However, there are times when certain situations like a disease or an accident require a more extensive and protective cover. This is when you should consider expanding your term insurance with suitable life insurance riders.


What is a term rider#?

A term insurance rider is additional and optional coverage that you can add to your term insurance for an extra premium. These riders provide coverage against a defined set of illnesses, conditions or situations that cannot be covered by the term insurance policy.

What is the benefit of having rider# insurance?

Apart from enhancing the coverage of your term insurance plan, riders are useful since you do not have to purchase a separate plan for an unforeseen event. You can choose to add some riders to your base plan for an extra premium, but that is more economical and much less of a hassle than having to purchase another policy for more coverage.

Furthermore, a stand-alone health insurance policy will require a separate medical check-up – something that is not necessary when adding a health rider or a critical illness insurance rider to your plan. However, if you have a pre-existing disease or ailment while purchasing your term plan, be sure to inform your insurance provider about the same.

Managing your term life insurance plan also becomes easier because you have a single plan that can provide protection against different unforeseen events such as an accident death and disability ,critical illness and hospitalization.


Why Should you Add Riders# to your Term Plan?

There are different term plan riders that you can attach to your term insurance plan. With Tata AIA Life term insurance policies, you can avail he following riders to enhance your coverage and get adequate financial security for yourself and your family. –


  1. Tata AIA Life Insurance Waiver of Premium Plus (WOPP) Rider (UIN: 110B029V02)

  2. Tata AIA Life Insurance Non-Linked Comprehensive Protection Rider (UIN: 110B033V02)

  3. Tata AIA Life Insurance Non-Linked Comprehensive Health Rider (UIN: 110B031V02)

  4. Tata AIA Life Insurance Accidental Death and Dismemberment (Long Scale) (ADDL) Rider (UIN: 110B028V03)

These are some of the reasons why adding riders to your term insurance plan will be beneficial:
  1. Extended coverage – While a term plan provides sufficient financial coverage for your family members in your absence, the cost of an emergency medical treatment or the lack of income due to complete disability of the insured earning member is outside the purview of a term plan. With the help of a waiver of premium rider, one can have their term plan premiums waived off in case of total permanent disability. All the same, the policy continues to be in effect.

  2. Cost-effectiveness – Purchasing a separate insurance plan in addition to your existing term plan to cover the costs of medical bills, accidental death/disability, or critical illnesses can become quite expensive. By including appropriate riders to your current term plan, you can save yourself the hassle of paying premiums for another plan. Term plan riders come at an extra premium, but they are still more economical than purchasing a new insurance policy.

  3. Provides emergency income – In case the insured, who is the sole earning member of the family, is unable to provide income for their family members due to partial or complete accidental disablement, having an appropriate rider to cover this situation would pay out a particular percentage of the sum assured to the insured’s family over a certain period of years. This ensures that the affected policyholder’s family does not have to face financial hardships due to the loss of a steady income.

  4. Tax* Benefits – According to the prevailing tax laws in the country, the premiums paid towards term insurance are eligible for tax deduction under Section 80C and the sum assured paid out to the beneficiaries is eligible for tax exemption under Section 10 (10D) of the Income Tax Act. Premiums paid for term insurance riders, such as health riders, critical illness riders, hospitalization rider etc. would be eligible tax benefits under Section 80D of the Income Tax Act.

What to know about adding a rider# to your term insurance?

According to the Insurance Regulatory and Development Authority of India (IRDAI), the different riders offered by life insurance companies are meant to provide extensive coverage to you and your family in case of emergencies. However, here are a few points to keep in mind while adding a rider to your term plan -  

  • An ideal time to include a term insurance rider to your base plan is while purchasing your policy. In most cases, younger people are at a lower risk of having certain critical illnesses and health issues than older individuals. Given this rationale, a critical illness rider or a health rider should be added to your term plan when you buy the policy at a younger age as the premium amount will be lower

  • It is imperative that the rider term should be less than or equal to the policy term of your term life insurance plan. Additionally, the sum of all the rider premiums added to your plan should be not more than 30% of the premiums of your base plan.


Adding relevant riders to your term insurance plan can be immensely beneficial if done at the right time. Therefore, always be sure to understand the entry age for the riders as well as other important details surrounding the inclusion of riders to your term life insurance policy.



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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

  • *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.