Riders are an option when they come along with the main insurance plan. They come at an additional cost but also with additional benefits. They are meant to provide extra coverage or facilities which otherwise are not covered in your basic plan. Riders are important for term insurance plans as well. Here’s a list of the top three riders you need to add to your main plan while buying term insurance.
Rider of Accidental Death Benefit
As per this rider, in case the policy holder passes away due to an indoor or outdoor accident, the sum assured plus the extra rider amount is received by the nominees of the policy holder, which could be his family membersr. In this way, accidental death benefit helps the policy holder cover himself with an extra amount apart from the main sum assured, in case of his death due to any sort of an accident. However, what if the policyholder is diagnosed with a terminal illness? In such a case, the next rider policy is extremely important, which is as follows.
Rider of Accelerated Death Benefit
This rider comes to the rescue of the policy holder’s family in cases where the policyholder is diagnosed with a terminal illness that requires expensive treatment. If a policyholder is diagnosed with a terminal illness and requires on-going treatment, it can become quite a financially troubling journey for the remaining family members. We all know that the death benefit will not be released in the form of a sum assured to the family unless the policy holder passes away. However, in case of the accelerated death benefit policy, a part of the main sum assured amount is released by the insurance company to the family members in order to take care of the medical expenses incurred for the treatment of the policy holder.
Disability Benefit Rider Due to Accident
Sometimes, an accident can’t be fatal or straight away lead to the policy holder’s death. There can also be a possibility that it may cause serious injuries to the victim and cause some amount of partial or complete or permanent disability. This can affect the person’s ability to function and provide bread and butter to his family. Even worse, it can be terrible if this happens with the breadwinner of the family. In such a case, not just the person who has been disabled suffers loss of income but the entire family runs into a deep financial pit from which it is extremely difficult to recover. In such a scenario, the disability benefit policy pertaining to the accident comes to the policy holder’s rescue. As per this rider policy, in case the policy holder gets disabled temporarily or permanently due to an accident, the insurance policy provider pays a certain amount for a span of five to ten years to the policy holder. This amount is pre-decided and is a certain percentage of the sum assured amount. This amount also varies from plan to plan. One needs to connect with the insurance company and enquire about this in advance and get the details.
In this way, you should surely check for these three rider policies while purchasing a new term insurance plan for yourself to protect your family.