Riders are to insurance policies what toppings are to pizzas. They let you further customise your insurance cover to suit your changing needs.
Using riders, you can get benefits over and above those offered by your basic plan. The amount you pay for these is small when you consider that you would otherwise have had to buy a completely new cover and pay a lot more.
The following are the types of riders.
Critical illness rider
Covers illnesses such as heart attack, stroke, cancer, surgery to coronary arteries. The policyholder is paid the sum assured if he contracts any of the specified illnesses under the rider. Note that the insured would need to survive the specified illness at least 30 days from the date of diagnosis to avail of this benefit. The policy along with all the riders (to the extent of the Rider Sum Assured) is then terminated. But your base policy would continue and you would have to continue to pay premiums on it.
Accidental death and dismemberment rider
Most insurers pay 100% of the coverage face amount in case of death due to accident. Also, in case of loss of more than one limb, or sight in both eyes, or loss of one limb and sight in one eye, 100% of the coverage amount is paid. In case of loss of one limb or sight in one eye 50%, of the coverage face amount is paid. Rider cover terminates once all or part of the coverage is paid.
Term Rider
Provides for payment of the coverage face amount in event of death of the life insured
Critical Illness Plus Rider
Not all insurance companies offer this rider. It covers an additional number of illnesses over and above those covered by the Critical Illness Rider. Will pay the coverage face amount if the insured is diagnosed with one of the conditions specified and survives for at least 30 days from the date of diagnosis.
Critical Illness Woman Rider
This rider covers 29 illnesses in total. Out of these three are pregnancy-related complications.
Waiver of premium rider/ life guardian benefit
Premium is waived if you are unable to pay premiums in the event of unforeseen calamities and the policy continues to be alive.
Income Benefit Rider
In case of death of the life assured during the term of the policy, 10% of the rider sum assured is paid annually to the beneficiary, on each policy anniversary till maturity of the rider.
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