6 Important Term Insurance Riders and Their Benefits

Term Insurance Riders are add-on to a term insurance policy that can be drawn on, if and when a certain event or instance is triggered. They allow for financial cover over and above the sum that is normally or initially promised in the said insurance policy. As and when the event for which the rider is purchased is triggered, the claimant of the insurance policy can draw on benefits of the policy. This allows him/her to gain additional benefits.

There are different kinds of Term Insurance Riders: 

1. Critical Illness Rider: Here, the policy holder will receive a lump sum as and when a valid diagnosis is made on a critical illness that has been pre-specified in the policy. Most critical illnesses are covered under majority Term Insurance Policies in India.
2. Disability Rider: This particular rider is triggered when the policy holder meets with an accident and is rendered partially or completely disabled by it.
3. Accidental Death Benefit: Here, if the policy holder happens to pass away due to an accident during the term of a Term Insurance Policy, he receives an additional sum. The amount of additional sum paid is calculated based on the original value of the insurance policy. There is usually a cap on the maximum sum assured.
4. Term Rider: Under this rider, a nominee is paid an additional sum.
5. Waiver of Premium Rider: In this case, if the policyholder becomes incapable of paying the remaining premium, due to income loss or disability, the remaining premium due is waived off, with the insurance policy still remaining intact. Basically, paying for this rider insures your premium to be paid on the original insurance policy.

Riders can a give added benefits to the already existing policy that is in effect. Opting for one allows an individual to make the most of a policy, basis their need.