Protect Your Wealth with Insurance Riders for Better Policy Coverage

• Riders are add-ons to a basic insurance policy, allowing you to customise your coverage to suit specific needs, such as critical illness or accidental death.

• Riders provide significant financial assistance, covering medical expenses, hospitalisation, and additional costs in the event of serious illness or accidents.

• A disability rider provides an income if you become disabled, while a waiver of premium rider can eliminate premium payments during disability, easing financial strain during recovery.

Insurance policies provide financial protection, but standard plans may not cover specific instances tailored to individual needs. To fill the gaps and add value, insurance riders in India include critical illness and accidental death. 

Choosing the right policy with valuable add-ons saves you from potential financial risks while ensuring extended protection from unexpected obligations. This is why considering them is key to your wealth-building strategy. 

Insurance riders refer to the extra features or add-ons that you can add. These serve you by enhancing your insurance policy as they provide more protection. They help you customise your coverage for specific things, such as accident and critical illness covers. 

You can customise your insurance policy through numerous options, some of which include:

• Disability Income Riders

• Family Income Riders

• Guaranteed Insurability Riders

• Joint Life Policy Riders

• Long-Term Care Riders

• Paid-Up Additions Riders

• Return of Premium Riders

• Term Conversion Riders

The two most crucial add-ons to your insurance are critical illness and accidental death riders. 

If you are an insurance policyholder diagnosed with a severe illness such as heart attack, cancer or stroke, a critical illness rider helps you get financial assistance. Your policy with this add-on will cover your financial obligations, such as medical expenses and hospitalisation costs.

Accidental death benefit is another valuable add-on that provides financial assistance during unexpected and severe accidents. If you are a policyholder with this add-on and pass away due to an accident, this rider will provide an extra lump sum payment. Over your standard insurance policy, this rider will help cover your financial obligations and other formalities.

A disability rider is another add-on providing financial assistance and protection to policyholders with disability. If you are unable to work due to a disability, this rider will provide you steady income for a specific tenure, helping you to maintain financial stability. It may also cover disabilities, including rehabilitation, medical treatment and support during your recovery.

In times of hardship, such as a permanent disability, coping with regular finances and expenses is not easy. To make sure you do not face financial hardships using the permanent disability feature, you can choose the waiver of premium rider. This add-on waives your premium expenses until you fully recover. 

To choose the right insurance rider, you must essentially assess your choices and needs. For example, if your family has a long history of critical illness, you can opt for a critical illness rider. Opting for it can be a wise choice, and it will help you cover high treatment costs and medications. 

You can choose an accidental death rider if you are prone to accidents or commute dangerously for work. Alternatively, if you are the sole earner in your family, you can choose both critical illness and accidental death riders. 

If you are looking for insurance with tax benefits as per sections 80C and 80D, you can opt for critical illness riders, as their premiums are tax-exempt. 

Buying an insurance rider on top of your standard insurance policy comes with an additional charge. This cost is added to your base policy premiums but provides valuable coverage. Before you sign in, you must assess if the standard policy fulfils your needs or if you need a rider.

Other than the cost involved, these riders provide other benefits including the following:

• Insurance riders provide extra financial protection in unexpected situations or the policyholder's death. 

• Buying a rider is more affordable than buying another insurance policy. 

• Riders enhance the terms of the current standard insurance policy, making it more pocket-friendly and helpful. 

• With numerous riders available, you can customise a standard policy and ensure coverage for your needs.

1. What exactly is an insurance rider?

Insurance riders refer to the extra features or add-ons that you can add to your basic insurance policy. They help you customise your coverage for specific things, such as accidental and critical illness covers.

2. Which riders are most common in India?

The most common insurance riders in India include critical illness, personal accident, hospital cash, and maternity riders. 

3. Do I need all available riders for my policy?

No. Generally, you do not need to get all insurance riders available in addition to your insurance policy. You can compare and select the one that matches your needs and preferences. 

4. Can I add riders to an existing policy?

Yes. You can add insurance riders to your existing policy during the policy anniversary to customise your insurance plan.

5. Are riders worth the extra premium cost?

Yes. Riders are worth the extra premium cost as they provide extra benefits without the cost of an additional insurance policy.

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