What is Term Insurance Riders?
A term insurance policy pays the death benefit to the person nominated by him in the event of death of the life assured. However, term insurance cover can be read in a variety of circumstances other than death. While buying a term insurance policy, you must have heard about term insurance riders. Term Insurance Riders provide an optional benefit in a term insurance policy that serves to protect you against specific emergencies and add additional coverage to your term policy. So let us know in detail about what are Term Insurance Riders.
- Accidental Death Benefit :
Accidental Death Benefit Rider pays an additional amount over the sum assured to the nominee if the policyholder who has taken the term policy dies due to an accident.
The Sum Assured in Accidental Death Benefit is different from the Sum Assured of a term insurance policy but does not exceed the base cover of the policy. The premium paid for the Accidental Death Benefit remains fixed for the entire term of the policy.
Accidental Death Benefit is paid only in case the death of the policyholder is due to an accident otherwise only the base cover is paid.
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- Partial / Total Permanent Disability Benefit :
This rider provides protection of partial/total permanent disability benefit against partial/total permanent disability caused due to an accident. In case of total disability, the person may suffer loss of livelihood. In this situation, it becomes difficult for the policyholder to pay the premium. Through this rider you can get your income replacement benefit. These riders are activated only when the disability of the policyholder is due to an accident otherwise it will not be valid in cases.
- Critical Illness Cover :
Critical illness cover is known to be one of the most popular riders in term insurance policy riders. This rider promises to pay a lump sum amount for the treatment of critical illness to the policy holder. This term insurance policy rider (Term Insurance Poicy Rider) covers all major diseases like heart and kidney etc. The details of Critical Illness Term Rider are given in the policy document at the time of taking the policy. You can check it thoroughly by reading about it. Considering the current medical costs, it would be a profitable deal for you to take Critical Illness Cover Riders. Hence you must take Critical Illness Cover rider.
- Waiver of Premium Benefit :
This Waiver of Premium Benefit Rider ensures that all your outstanding policy premiums are waived off if the policyholder is unable to pay the policy premiums due to critical illness or accidental disability Go Along with this, you should also be provided with complete insurance cover till the policy term. Therefore, through this rider, you can take full advantage of the cover of Term Insurance Policy even without paying the premium.