Most responsible individuals aspire and work towards securing a solid financial backup with insurance for their dependents after they are no more. However, life sometimes can take turns and cause a forceful shift even in the most well-thought plans.
It’s not intuitive to completely rule out the occurrence of uncertain and unforeseen risks in life that might render a term insurance policy to lose its effect, or worst case even deprives the family of their chance to claim for it. In such situations, riders can offer that additional protection and provide support over and above the basic policy.
Riders are essentially add-on features that one may opt to enhance the value and functionality of an existing term insurance policy, given the positive probability of occurrence of several unfortunate scenarios. They essentially have to be bought separately for different events at some small charges over and above the regular premium.Choosing the right riders hence is as important as opting for a term policy.
The right choice of riders for you depends on the features that are most suited to your life situation, what you need the most and can afford to pay for. With that, here are some of the most meaningful riders with their applicability to help you customise effectively.
1. Critical Illness Rider
The critical illness rider is among the most important riders that you must consider adding on to your term policy, given the present-day lifestyle and increasing incidence of critical illnesses. This add-oniseven more important for you if your family happens to have any medical history of illnesses such as cancer, heart attacks and so on as it means you’re at a higher risk of developing the same.
Suppose worst case;you happen to get diagnosed with such a disease at any time; the treatment costs can be exorbitant and put you through a lot of financial strain and distress. Even if you have bought health insurance, it might not be adequate to financially secure you against these diseases, depending on its exclusions and inclusions.
At that point, if you have covered yourself under the protection of this rider, you need not drain out your savings to fund your treatment. Moreover, if unfortunately, that illness results in death, your term insurance policy will support your dependents with the lumpsum as promised.
2. Accidental Death Benefit Rider
Sudden accidental death of any family member can be shattering. That feeling can get only worse if that member happens to be the bread earner, and the spouse and children are not prepared to handle life without him or her.
This particular rider takes care of these very situations and helps the family with an additional sum over and above the sum assured in case the policyholder dies due to an accident.This additional money can be a great sense of support at that grey hour. In fact, it is extremely important and specifically more relevant for you if your work requires you to spend your working hours in a hazardous environment.
3. Disability Income Benefit Rider
This rider is an absolute must if you’re the sole bread earner of your family. In case you ever become a victim to any disability, this add-on can ensure that your dependents are financially secured.
The shock from a loss of income can be hard to absorb, in addition to dealing with the emotional pain of turning victim to physical disability. Purchase of this rider sees to it that the family receives a fixed sum of money for a certain number of years if such an event occurs. This ongoing financial support can be a blessing and can make your loved one’s transition towards developing an alternate source of income smooth.
4. Premium Waiver Benefit Rider
We all know that if we fail to pay the due premium on time within the grace period allowed, lawfully the term policy is going to lapse. In other words, the entire premium you’ve paid so far will be forfeited,and your family will not receive the money from the claim later.
It’s also intuitive that nobody would willfully want to skip a term policy premium payment. However, life doesn’t always go as planned, and sometimes unfortunate incidents or situations might occur that can make it tough to meet the financial obligations you actually intend to with full discipline.
For instance, it could happen that you meet with an accident that leaves you with a permanent disability, or you get sick with a critical illness and are unable to pay your dues to ensure your policy is active.
In these situations, the waiver of premium rider offered by insurers like Max Life Insurance can be a complete blessing. It can help you keep your term policy active and leave behind the sum you have always planned for your dependents. The rider is going to provide you with the freedom from premium payments under situations as per its inclusions and not strain you in case life unrolls unpleasant situations for you.
Hence, by analyzing your life situation for these circumstances, you can narrow down on a list of riders that may be meaningful for you.
Thereafter, you can go through the inclusions, exclusions and customize the best term policy to take care of your loved ones.