Riders to make your term policy Comprehensive

The last two year have been uncertain for all of us. People have been through some really tough times. Further the second & third wave served as a reminder that life is unpredictable. After all, so many breadwinners died in the first and second waves of Covid. As a result, people have become more conscious of the importance of life insurance.

Term insurance policies are tailored in such a way that, in the event of the policyholder's untimely death, the beneficiaries get the sum assured as a lump sum payment or a monthly income, depending on the dependents' preferences. The insured pays the premium to the insurer until the policy duration expires, after which the insurer provides the policyholder with insurance coverage. In a term insurance policy, the policyholder also has the option of adding more features to the policy in order to get a more comprehensive coverage. These additional covers are known as Riders.

Insurers provide policyholders the opportunity of tailoring their term insurance cover with add-ons, often known as 'riders,' based on their unique needs and requirements. Riders are essentially add-ons that can be added to a basic insurance policy to increase coverage and enhance the sphere of benefits. A rider normally comes into action when the specified event for which it was purchased occurs. As a policyholder, it is essential that you select the appropriate term insurance rider in order to receive the required benefits.

Following are some of the riders that you should add to your plan to make it more comprehensive.

Income Benefit Rider

It is extremely difficult for the family's dependents to replace the income if the only breadwinner dies suddenly. This rider should be added in your insurance plan considering the rising Omicron cases. The family receives a set amount of money for a specified number of years thanks to income benefit riders in a term insurance policy. The income benefit rider is an addition to an existing life insurance policy that pays out an amount equivalent to the policyholder's monthly income to the beneficiaries. Along with the whole sum assured, the dependents receive additional income for around 5-10 years. The rider is best suited for salaried individuals who are also the family's only breadwinners.

Critical Illness Rider

Post-covid infections were also identified in many patients with comorbidities. Some of these occurrences resulted in significant critical illnesses such as heart attacks and coronary artery bypass surgery, neurological problems etc. Some of the diseases that can wreak havoc on a person's finances if they don't have proper insurance.It's better to have a term plan with a critical illness benefit as a rider for all of these scenarios. It's a rider that helps cover the costs of critical illness during both in-hospital and out-of-hospital stays.

During the recovery period, the Critical Illness rider provides much-needed financial flow. The rider pays the insured a lump sum payout if the sickness is diagnosed. The term insurance plan payout is paid to the nominees if the insured dies during the critical illness.

Waiver of Premium Rider

This rider ensures that if the policyholder is unable to pay future premiums due to a loss of income or disability, the policyholder's future premiums will be waived. The best aspect is that the insurance coverage is still in effect. This rider essentially insures all of your premium payments until the policy expires.