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Often term life insurance buyers are lured with the idea of enhancing the cover with a rider. But a common question each of them has is, “Which rider should I buy?” But no one can answer this question better than you. A rider as we know is attached to a policy to include a coverage that is not originally provided by the plan. Hence, it depends on your judgment of your needs & the kind of cover you’d want to have. Perhaps by underst&ing which rider does what; you’ll be in a better position to choose a rider – Accidental Death Rider On availing an accidental death rider with your term life insurance plan you get an additional sum assured in case of death due accident. Many buyers believe in the myth that the policy will pay them for death due to accident only if they get this rider. This is not the case at all. You will definitely get the base sum assured. But with this rider you will be paid an extra sum assured if the insured dies due to an accident. So if you have an insurance of Rs.50 lakhs then you can get an additional sum assured of Rs.25 lakhs. Some policies also cover for disabilities arising out of accidents. Permanent & Partial Disability This rider helps you to cope with permanent or temporary disability due to accident. The policy pays the insured for next 5-10 years a certain percentage of Sum Assured. For e.g. 10% of the sum assured will be paid to the insured for the next 10 years. The rider here acts as a regular source of income in times when you cannot resume work but still need to cope with your daily life & added expenses of medication. Most of the times, such a facility is combined with Accident Death rider. Critical Illness By attaching this rider to your term life insurance you avail a lump sum amount if you are diagnosed with an illness as mentioned in the policy document. This plan covers all major illnesses like Heart Attack, Cancer, Stroke, Coronary artery by-pass graft surgery (CABG), Kidney failure, Paralysis etc. Also, the insured should survive for 30 days after diagnosis. After detection of the illness the policy may or may not continue to cover you. Also, the coverage may reduce after paying you the amount. So make sure to read the document carefully. Waiver premium – With this rider you can ensure that your policy continues to cover you even if you are not able to pay the premium due to disability or income loss. If you do not have this rider with your term life insurance plan & you face a disability on account of which you can’t pay your premiums, then your policy will lapse. This means you will not get any benefit in case of an eventuality. I am Anjana Shirskar, an experienced author with keen interest on Insurance Policy. I have a number of articles to my credit based on topics related to term life insurance.
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