Add These Useful Riders to Your Online Life Insurance Policy

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Financial independence and safety are the primary reasons why we need to have a source of steady income. But usually, incomes are prone to setbacks, which can happen due to various factors and are mostly not in our control. Thus, to keep oneself ready to tackle any situation and unnecessary risks, wealth creation is essential.

While you are at it, investing money in different types of insurance policies after careful research can help you fulfil your life goals. Explore online insurance plans and compare different benefits to select the best one for yourself.

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Term life insurance plans are one of the most beneficial emergency backups. Situations like a major financial crisis can make the lives of your loved ones a lot more challenging. For any family, losing the bread-earner can be devastating. But a term life insurance policy will give them the strength they need to stay afloat financially.

Apart from this, several other things can affect the lives of your loved ones in your absence, such as a mortgage, or child obligations. For this reason, different types of insurance including most term life insurance plans will give you the option of riders. It will help if you read the online insurance policy’s policy wordings to check which plan offers the most suitable add-on options.

These insurance riders offer multiple benefits like the following:

  • Enhanced Protection: An imperative reason to add riders to your term insurance policy is that you want your family safe from more than one hazard. Life-threatening illnesses and accidental disabilities with expensive treatments are equally devastating, if not more. Hence, when you opt for an online insurance policy, you can add riders for more protection.
  • Minimal Management Hassles: When you opt for an online insurance policy, you will know that generally, riders work along with the basic cover. But if you buy a separate accidental and critical insurance cover, you may pay more premiums and have more policies to manage. Plus, one drawback of buying separate covers is that combined benefits may not be available.
  • Enhanced Coverage: The addition of riders will also increase your total protection pool. It is a crucial benefit as in many cases like accidental deaths, long hospitalization, and medical expenses may precede the ultimate demise. Hence, your family will require a lot more money than just the death claim to look after everything.

While these are some of the general benefits you should keep in mind while opting for an online insurance policy, you can consider these riders:

  1. Critical Illness and Disability Rider

If you add the critical illness rider to your online insurance policy, you will receive a lump sum on a valid diagnosis of the listed ailment. This disease needs to be pre-specified in the plan. Generally, many major illnesses are a part of the critical illness cover. It typically includes cancer, heart attack, paralysis, kidney failure, major organ transplant, and many others. Once the ailment is detected, the plan may either continue or terminate as per the policy terms and conditions.

Due to an unforeseen event, if you meet with an accident and are rendered partially or permanently disabled because of it, this rider will be beneficial. With the rider’s inclusion in your online insurance policy, you will receive an amount regularly for the next five to ten years after the disability.

It will be paid in a certain percentage of the sum assured. This rider can then be relied upon as a source of income. However, note that it comes into force only if the disability occurs due to an accident.

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  1. Waiver of Premium Rider

The addition of this rider to your online insurance policy is extremely beneficial. With this, the premiums will be waived off if you can not pay them due to income loss or disability. The most vital part is that the policy will remain active. You are akin to having all the plan benefits until the policy expires.

If you do not have such a rider added to your online insurance policy, you may face difficulty handling such uncertain situations. For instance, disability implies income loss due to which premiums cannot be paid. The policy may expire, and no death benefit is payable due to non-payment of due premiums. You need not worry about the policy lapse with such riders, as the future premiums will be waived off.

  1. Accidental Death Benefit Rider

If a mishap occurs, such as an accident during the policy term, this rider ensures an additional sum assured to your family. Usually, the percentage of this additional sum is calculated on the original sum assured and may vary from company to company. Many insurers offer a cap on the maximum sum assured on this rider. But the premium for this rider remains fixed for the entire policy term.

However, there is one misconception associated with this rider. You will receive the sum assured only if the cause of death is an accident and not otherwise. But that is not the case. Note that the basic sum assured will still be paid without the rider. The accidental death benefit rider promises an additional sum, over and above the basic sum assured if the cause of demise is an accident.

Note that the premium that you pay on a rider cannot exceed 30 % of the premium paid for the base online insurance policy. It has been stated by the Insurance Regulator of our country- IRDAI. Thus, it will be best to check these factors before you buy an online insurance policy.

Source: https://www.irdai.gov.in/ADMINCMS/cms/Uploadedfiles/TAC1516/121N108V01.pdf

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