Choosing the right life insurance rider is as crucial as buying itself. After all, no one wants to regret a wrong decision. That’s why, one must take time and expert’s advice before buying a rider. These plans, with additional features, help in enhancing the base cover. However, without knowing the types of riders available in the market, one shouldn’t randomly buy one for the sake of increasing the cover amount. In this regard, here are some of the rider options available for insurance seekers:

Accidental Death Benefit Rider

With this rider, in case of the accidental death of the insured, the nominee will receive the policy amount along with the rider benefit. In many cases, the death doesn’t occur on-the-spot, so most of the insurance companies set a period after the incident to extend the offered cover. Lets’ say, if the policyholder dies after 100 days of the accident, the nominee still receives the sum assured. That’s why, it is imperative to check the policy clause carefully at the time of buying a rider.

As eventualities come without prior notice, anybody can take this rider. However, it is a must buy for those who-

• Commute and travel by car, bike, public or commercial vehicles, on a daily basis.
• Someone who frequently does business trips or if the job involves physical work in a factory or on-site civil work

Accidental Total and Permanent Disability Rider

If the insured person is unable to earn a daily income due to the accident which leads to total temporary or permanent disability, this rider provides financial assistance to the family. In such unfortunate situations, the insurance company bears the monthly income of the insured. The rider benefit may vary plan to plan and it is paid for a pre-decided time period. For instance, some companies offer rider benefits for 5 to 10 years from the occurrence of the accident. In case of the death of the insured during the policy term due to suffering, the beneficiary would receive the outstanding sum assured amount.

This rider is important to buy for the individuals who-

• Commutes and travel by car, bike, train, public or commercial vehicle, on daily basis.
• Someone who frequently does business trips or if the job involves physical work in a factory or on-site civil work

Critical Illness Rider

This rider covers major critical ailments like cancer, heart attack, kidney failure, stroke, coma, paralysis, etc. As the coverage may differ from insurer to insurer, it is important to check the list of illnesses included by the company.

The insurance company offers the rider benefits on the detection of a critical illness. Though any of the above listed critical illnesses may not cause immediate death, the treatment could cost a bomb or could force the insured to leave the job. In such situation, the insured is compensated using this rider plan where the given money can be used is monthly expenses or in the treatment. However, the pay-out may vary as some insurer offers 100% of the basic sum assured and others don’t . The only condition is that the life assured will have to survive a waiting period.

As no one can predict such an illness, this rider can be bought by anybody, especially

• Top-level officers with extreme work stress
• Chain-smokers
• Someone with unhealthy lifestyle

Waiver of Premium

If the insured is unable to pay the premium due to any disability that leaves him/her with no income, the life insurance policy terminates. In such cases, the insured wouldn’t be offered any compensation. Then, how will the family manage without an income?

In such a situation, Waver of Premium rider is a savior, as all the future premiums will be waived off and the policy will be in force as before.

In case the premiums are not paid due to the death of the policyholder or accidental disability, the premium for the main policy and riders will be excused and the policy will continue.

Usually, this rider can be bought along with Critical Illness and Accidental Total and Permanent Disability Rider. If not, the insured has to buy it separately. As uncertainties can’t be predicted, one should buy this rider, especially those who-

• Commutes and travel by car, bike, public or commercial vehicle, train on daily basis.
• Someone who frequently goes on business trips through flights or if the job involves physical work in a factory or on-site civil work

Accelerated Death Benefit Rider

This rider works as a saviour in case the policyholder is detected with a critical illness such as cancer, AIDS, leukemia, Ebola etc., which may shorten the lifespan of the insured. In such cases, the insurer pays a portion of the base sum assured in advance. This can be utilised for the treatment or for paying monthly expenses. The remaining money will be paid to the family on the death of the insured to secure their financial future.

Before taking any decision, a thorough analysis of lifestyle or surroundings is required. Based on this, the insurance seekers should decide whether they need this rider or not.

Term Rider

This rider offers a monthly income or lump sum to the beneficiary in the event of the premature death of the insured. The benefit can be equal to the base sum assured which is pre-determined by the insurer.

Importance-Someone who wants to leave behind a huge death benefit.

Hospital Cash Rider

Under this rider a fixed amount is paid in case of emergency/planned hospitalization. The benefit amount, terms and conditions, and sum assured may vary from insurer to insurer.

This plan is for those who want to cover expenses related to emergency hospitalization.

Surgical Care Rider

If the insured undergoes an unavoidable surgery in India, under this rider plan, a lump sum amount will be paid. However, the rider benefit may vary plan to plan or may vary from minor to major surgery.

This plan can be purchased by anyone who wants to cover the expenses for surgery in case of any eventualities. This helps in mitigating any out-of-pocket expenses that may burn a hole in one’s pocket.