A life insurance plan is critical in the sense that it provides protection to an individual’s family in the event of his/her untimely demise. Life insurance comes in many forms including term life insurance, whole life insurance, unit-linked investment plans (ULIPs), endowment policies, etc. All these plans come with their own range of benefits as well as limitations. In addition to the basic protection offered by a life insurance policy, most life insurance companies in the market offer various rider plans (add-on covers) to enhance the level of protection offered. These covers are completely optional, and they can be chosen according to one’s preference.
The main purpose of a rider policy is to provide cover for instances during which the scope of a base life insurance policy is limited. For instance, there may be instances during which a person may require a personal accident policy in addition to a life insurance cover. Instead of subscribing to a new policy altogether, the person may simply choose an add-on cover along with a term plan. Some of the key benefits of rider cover in life insurance can be listed as follows:
Rider covers are essential along with life insurance policies mainly for the following reasons:
There are different types of rider policies available in the market. The list of rider covers available with a policy may vary from one insurer to another. The premium charges may also differ from one insurer to another. Hence, it might be worthwhile to do thorough research before subscribing to a rider policy. Let’s take a look at some of the popular rider covers available in the market.
The benefits offered by rider covers cannot be denied. Before you subscribe to additional rider covers, it is better to consider the options carefully. Enhanced protection is good, but the overall cost could be significantly high if you subscribe to all the rider policies offered by your insurer. Hence, you must figure out your actual requirements before taking rider policies alongside your base cover. Also, you may have to plan for your family’s future financial requirements while thinking of subscribing to additional rider plans. For instance, if monthly income is a big concern for your family, you may have to subscribe to the income benefit rider plan. In a similar way, you can customise your policy according to the requirements of your family.
Rider policies have often proved to be effective when it comes to enhancing the level of protection offered by life insurance covers. Most insurers in the market provide flexible options to take rider policies alongside any variant of a life insurance cover, be it a term plan or an endowment policy. With the right mix of rider policies, you can get access to comprehensive coverage without burning a big hole in your pocket.
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