term insurance The policies are designed in such a way that, in the event of the untimely death of the policyholder, the beneficiaries get the sum assured as a lump sum payment or monthly income depending on the preferences of the dependents. The insured pays premiums to the insurer till the end of the policy term and is covered by the policy for this period in the event of his death. In term insurance, the policyholder can add more features to the policy to get more comprehensive coverage. These additional covers are known as riders.
Sanjeev Bajaj, Joint Chairman and Managing Director, Bajaj Capital said that the policyholder can buy term insurance rider by paying the additional premium amount. Most plans allow riders to be added at the inception of the policy, while others allow riders to be added at the policy anniversary. “You should also be aware that a rider usually comes into action when the specified event for which you purchased the policy occurs. You can inform and stop paying rider premium while continuing your base term policy benefit,” Bajaj said.
Following are some of the riders that you can add to your policy to make it more comprehensive.
income benefit rider: This rider is in addition to the existing term insurance policy which pays an amount equal to the monthly income of the policyholder to the beneficiaries. Dependents receive additional income for about 5-10 years. John Mayne, Executive Director, Coverfox Insurance, said, “If you want to provide your family with the convenience of regular income in your absence, you have the option of breaking down your death benefit payments over a period of time, with that amount helping them. to meet the expenses of his household”.
critical illness rider: This rider helps to cover critical illness expenses during hospital stay and out of hospital. Sajja Praveen Choudhary, Head, Term Life Insurance, Policybazaar.com, said that several COVID survivors were found to have developed comorbidities, some of which resulted in significant critical illnesses such as heart attack, coronary artery bypass surgery, and neurological Problems happened etc.
“Hence, if one does not have a comprehensive term policy, these ailments can wreak havoc on one’s finances. Thus, it is better to take a term plan with critical illness benefit as a rider.”
If you are diagnosed with a critical illness, the rider pays you a lump sum. The rider can provide much needed financial flow during the recovery period. Further, if the life insured dies of any critical illness, the term insurance policy is paid out to the nominee.
Premium Rider Waiver: This rider ensures that the insurer will waive off the policyholder’s future premiums if he cannot pay them due to loss of income or disability. The important aspect is that insurance coverage is still in effect. In this way, the rider essentially ensures the payment of all your premiums till the end of the policy.
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