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What Is a Family Term Rider?

Integrate the Family Term Rider into your term insurance policy. It is a key to financial security and regular monthly income for your family in your absence.
 

Have you sought ways to enhance the safety net offered in your term insurance coverage? If that concerns your family’s financial future, here is a perfect solution: get a Family Term Rider#.
 

So, how can this rider# option make a difference? It extends beyond conventional benefits, promising a steady monthly income in the event of the policyholder’s unexpected demise. 
 

It is an extended level of preparedness that provides financial stability to maintain the quality of the lives of the family members in the absence of the sole breadwinner!
 

This blog will explore how this rider# eases the financial burden for the entire family’s well-being.

What Is A Rider# In A Term Insurance Policy?

A rider# in a term insurance policy is an add-on cover option that provides a benefit in addition to the regular term insurance plans. It is a more targeted cover, over and above the term plan, that covers specific circumstances, such as premium waivers, critical illnesses, accidental deaths/disabilities, etc.
 

Different types of riders# exist in term insurance policies. Family term insurance rider# is one of the essential rider# options considered crucial for a family.

What Is Family Term Rider?


A family term rider# is an option in a term insurance policy that provides a complete or a portion of the term insurance death benefit as a regular income against a lump sum benefit. It can serve as a regular income for a family in the event of the unexpected death of the life insured. 
 

The family term rider#, also called the family income benefit rider#, can help a family with young members manage financial inconsistency without the family's sole breadwinner. It can also benefit a family who cannot handle a lump sum wisely. 

How Does A Family Term Rider Work?

  • The family term rider# benefit can be availed of by paying an additional premium for the term insurance policy. 

  • It will ensure that the nominees receive a monthly steady flow of income until the end of the policy term in the event of the policyholder’s death.

  • The policyholder can choose the amount of monthly income that can be provided as the family term insurance rider# benefit. It can be equivalent to their salary or the regular flow of income.

  • At the end of the policy tenure, the term insurance provider will provide the remaining portion of the sum assured as a lump sum, subject to the policy terms and conditions.

Benefits of Family Term Rider
 

Elevate Family Security: The Ultimate Solution For Managing Routine Family Expenses

A family term plan helps secure a family’s financial future in the absence of the sole earning member in the family. However, the term insurance benefits are optimally utilised only when the nominee manages the lump sum death benefit wisely.
 

If the nominee is not mature enough to spend the amount for the right expenses, the family’s financial security can go for a toss! 
 

A regular income from the family term rider# benefit can elevate the family’s financial security in such scenarios.
 

High Value, Low Cost: Making a Huge Sum Assured Affordable

A family term policy is considered one of the most affordable life insurance plans for a huge sum assured. And with the family term rider#, although at an additional premium, it can provide a huge sum assured as a regular income and is affordable over the long term. 
 

It is cost-effective for the value and financial freedom rendered for reducing the family’s financial burden. 
 

Flexibility: Maximising Lifetime Freedom

With the family term rider#, the policyholder can choose the amount of regular income, policy tenure, sum assured, etc., based on their family’s financial requirements and future goals. It can redefine a lifetime of financial freedom for their family in the event of their unexpected demise. 
 

Boost Your Savings: Unleash Tax Deduction And Exemption Benefits

Under Section 80C, the premium paid for, and under Section 10(10D), the payout received from a term insurance policy qualifies for a tax* deduction and exemption benefit. The family term plan policyholders can ensure a monthly income in their absence for their family while saving on tax* throughout the policy tenure.

Who Should Purchase A Family Term Rider?

A family income benefit rider# is considered essential for any family. However, it can be crucial for certain specific individuals.
 

Family’s Sole Financial Pillar: The Earning Member 

A family term rider# becomes necessary for families with a sole breadwinner. For instance, young parents, budding entrepreneurs with young family members, etc., must ensure a financial resource for their family’s routine expenses. 
 

Youthful Family Unit: Filled With Young Members 

If a family is filled with young members, utilising the financial benefit can become challenging in the absence of the life insured. Therefore, a family term insurance rider# in such scenarios can extend the financial advantage in a regular manner to secure the family necessarily and wisely for the long term.
 

Securing Loved Ones: A Lifeline For Individuals With Liabilities

People who have loans, debts, mortgages, and other liabilities might have to plan their finances in a different manner. Since they need to pay regular instalments to clear off the debt, it can get burdensome for the families in the unexpected event of their death. 
 

A family term insurance rider# can be a huge benefit for such individuals to help their families clear off their debts and set them free from such financial liabilities.

Wrapping Up

Transforming a lump sum into a regular income alleviates the need for financial support to manage routine expenses during unprecedented scenarios. By ensuring a regular income for the family, the earning member can ensure that the family’s financial needs are met, future aspirations are protected, and uncertainties are covered for a lifetime! And that is what makes the Family Term Rider# a thoughtful investment for a family’s financial future.

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Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA),  Tata AIA Life Insurance  is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

View all posts by Tata AIA Life Insurance

Frequently Asked Questions

When is the best time to purchase the family term rider?

The best time to buy the family term rider# is during term policy inception. It can help you stay covered and ensure the regular monthly income for your family in your absence at any time during the entire policy tenure.

Who can benefit from the Family Term Rider?

The rider# is a beneficial addition to your term insurance policy. It is a valuable consideration for sole-earning members, young parents, individuals with financial liabilities, and families that rely on a single income.

Can I choose the monthly income provided by the rider?

You can choose the monthly income provided by the rider#. However, it will depend on the sum assured and the insurer’s policy terms and conditions.

Disclaimers

  •  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.

  • *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.

  • #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