Customise Your Coverage: Building the Perfect Term Insurance Plan with Riders

Life is uncertain, and it is important to manage your finances well to ensure long-term stability and security. Among the several financial tools available, term insurance has recently made a significant mark in the market. This financial investment acts as a safety net that takes care of your family during your absence. It reduces financial stress and offers peace of mind.  

In addition, including the right riders in the term insurance plan offers comprehensive coverage and ensures ultimate protection. This blog will discuss how you can customise your term insurance coverage with the perfect riders.

What is a Rider in a Term Insurance Plan?

A rider is any additional benefit or cover you can include in your basic term insurance plan. It provides you and your family with extra coverage apart from the basic insurance plan. However, you must pay extra premium amounts to the insurance company to receive the riders' benefits. 

What are the Different Types of Term Insurance Riders?

As there are several riders available for term insurance plans, you can choose from the ones listed below:

1. Accidental Death Rider

In the case of an accidental death rider, your family can receive coverage if you die due to an accident during the term. The insurer would pay an additional sum assured for this rider to your family or dependent. It stands apart from the sum assured that the family would receive for the basic term life insurance policy.

2. Accidental Disability Rider

The accidental disability rider assures that when you become disabled due to an accident, you can receive the sum assured against this particular rider. You can receive the amount as a lump sum after the accident or a monthly income for a fixed tenure. Furthermore, depending on your financial requirements, it can be for 2 years, 5 years, or 10 years.

3. Critical Illness Rider

It makes you eligible for a lump sum amount if you are diagnosed with a critical illness, as mentioned in the rider of the original term insurance policy. Some of the common illnesses include cancers, heart diseases, and kidney failure. Hence, the insurance covers these expenses, as they are expensive, giving you time and the ability to focus on your recovery without worrying.

4. Terminal Illness Rider

The terminal illness rider ensures that if you are suffering from an incurable illness and likely to die within the next 6 or 12 months, the insurance company will pay the amount to the nominee or dependents without waiting. However, it has to be confirmed by the registered medical practitioners of that particular field.

5. Waiver of Premium Rider

Waiver of premium rider ensures that when you cannot pay the premiums, all future insurance premiums get waived without any effect on the policy. In addition, it ensures the continuance of the policy throughout its term. Without this rider, you could lose the death benefits if you miss premiums in a term insurance plan.

What are the Benefits of Riders in Term Insurance Plans?

Here are a few benefits of including riders in your term insurance plan:

1. Enhanced Coverage

While the term insurance policies provide only death benefits, riders allow you to enhance the coverage as per your needs. For instance, the critical illness rider will provide financial security if you are diagnosed with a serious illness during the policy term.

2. Cost Effective

Opting for riders as part of a term insurance policy is much cheaper than purchasing separate insurance policies. You can easily calculate the premium amount using the term insurance calculator and make an informed decision about including riders in your basic plan. 

3. Customisation

As the requirements regarding insurance vary from person to person, riders help in tweaking your term insurance policy according to your needs. You can customise the policy with riders that address your concerns regarding your needs, such as accidental death benefits or disability coverage.

4. Flexibility

When you add riders to your term insurance policies, they are flexible and can change according to your new life insurance requirements. You can add or remove riders to your term life insurance. 

5. Peace of Mind

Knowing that your family will not struggle financially after your sudden demise can increase peace of mind. Riders provide added reassurance that you and your loved ones are financially protected against multiple risks and uncertainties.

Final Words

Including riders in your term insurance plan involves extra premiums, but they offer comprehensive coverage after your sudden demise. They ensure your family does not struggle financially.