Should You Go For Riders In Life Insurance?
September 11, 2018 by Justin Weinger
The benefits of buying a life insurance policy are not unknown. The life insurance policy offers protection to your family when you are not there. There are also many life insurance policies that you can buy for investment purposes along with life cover.
A life insurance is a necessity for those who have dependent like old parents, children and also have some liabilities like EMI’s to be paid. There are many life insurance policies available for purchase so you need to make sure to buy what you need.
What Exactly Is A Rider?
Riders are basically a benefit that you can add on to the online Life insurance policy. This gives you some additional perks.
The coverage that you get from the life insurance plan will also be increased when you purchase a rider. The rider helps to give you lots of flexibility so that you can design your life insurance policy as you need. The plan thus can be customized based on what your individual requirements are.. Buying a rider with your policy means that you will need to pay some extra premium amount to the insurance company for the additional coverage.
Customize The Online Life Insurance Plan Based On Your Requirements
With the number of online Life insurance policies and options available you are bound to get confused. On the brighter side with so many options available you are also able to customize the insurance plan. This needs to be done based on how your lifestyle is. The best way to customize your life insurance policy is to buy riders along with the basic life insurance policy.
Like suppose you buy a pure online Life insurance term insurance plan. Here the insurance plan will give you a basic life cover and will give your family a lump sum amount in the case of your death within the policy tenure. This means that you can be assured that at least the financial aspects of your family are taken care of. The sum assured amount that you finally will receive will be able to cover up for their requirements since it is a huge amount. However someone who is buying the term insurance plan could also buy some riders along with it so that the plan has some added features and this makes the plan more wholesome.
The Riders That You Can Choose With Online Life Insurance Along With Your Basic Insurance Policy
Different insurance companies will offer different types of riders in insurance riders along with your basic insurance plan. Before you decide on one you should be aware of what the different kinds of riders are:
The waiver of premium rider
The WOP or the waiver of premium rider is used to help you in the case of any emergency. Waiver of premium rider worth it.The rider will waive off the future premiums if in case the policyholder faces some disability and is unable to pay the premium amount. It is also beneficial if the policyholder is unable to work and is diagnosed with some illness that makes him handicapped.
Critical illness rider
A critical illness rider life insurance is necessary because of the high medical costs today. Any critical illness will increase your hospital bills and will also end up hampering your career. You will get disabled and not be able to get an income. The critical illness plan thus will be used in case of such an eventuality. The rider will offer an income replacement and the amount that you will receive will help you to meet your expenses. The rider cost is not a huge amount and is a small addition to your premium amount that you are paying towards the life insurance policy. But the benefit of this rider is that it will cover you in the case of any critical illness.
The online Life insurance company may not cover all the diseases under the rider so make sure that you read the terms and conditions and know about which diseases are covered. When you buy this rider when you are buying the insurance plan it will help you to save yourself financially in the case of any diseases that is life threatening. This could be cancer, a heart attack, a kidney disorder or even a coma.
Accidental death rider
The accidental death rider is offered with most of the term insurance policies but it is an add-on to the base policy. The statistics along the accidental deaths are huge and if you are the sole earning member of the family then this rider is beneficial for you. In case of death because of an accident your family gets the rider sum amount as well as the sum assured in case of death benefit. The policies linked to the rider sum assured could be different for different companies. Know the best term insurance plans with accident rider.
The rider cost also will vary from one company to the other and so will the sum assured amount.
Permanent or partial disability due to an accident
The online Life insurance term plan may not be able to cover in the case of an accident. This is because in the case of an accident one could be disabled completely. In the case when the policyholder is unable to get back to his normal life then the insurance company will pay the policyholder the lump sum amount or would waive off the premium. The policyholder is also paid the sum assured associate with the rider.
Why Should You Buy A Rider With The Online Life Insurance Policy?
The rider what is a rider on a whole life insurance policy is like you would be buying a new policy. However when you add the rider to the life insurance policy it is also very economical. The rider also lets you get maximum coverage along with the basic insurance plan. You need to however select the rider based on what your requirements are. It is thus ideal that you buy a basic life insurance plan and then add riders to it based on you individual needs.
The riders are highly beneficial and thus make sure that you understand which ones you can benefit form.
Riders Are The Best Thing About A Life Insurance Policy
Life is totally unpredictable and you never know what could happen to you in the next minute. Thus you need to be planned to take care of any crisis that may happen. When you buy an insurance policy it lets you meet the financial needs of your family when you are not there. There are many basic insurance policies and when you choose a rider then it adds to the benefits that the policy has to provide. To get these benefits you will have to pay some extra amount towards the premium. The advantage however is that you get better protection and can enhance the basic life insurance plan.
Additional Riders With Your Life Insurance Policy
You could also consider these other insurance rider example options along with your life insurance policy.
Guaranteed insurance rider
This lets you buy an add-on coverage on to the base life insurance policy. You can buy this without having to undergo any medical examination. The rider is beneficial to those who are going through a change in their life. This could include marriage or child birth. You are going to age and the additional coverage lets you be insured against chronic illness rider life insurance.
Spouse insurance rider
The rider lets you cover your spouse as well for an additional premium amount.
Family income benefit rider
In the case the policyholder dies, then the family income benefit rider gets clubbed with the basic insurance policy and this lets you family get a steady cash flow. However make sure that you check that for how many years the insurance company will be paying your family.
Accelerated death benefit rider
In the case when the policyholder has an illness that is terminal in nature, then some amount of the total coverage that the life insurance provides can be used towards the treatment of the person. However this amount will get deducted from the financial payout amount.
Do These Riders Offer Any Kind Of Extra Benefits Or Should You Not Opt For Them Because It Is An Unnecessary Cost
Not all the insurance riders are good for the consumers. Should I take rider with term insurance? You should particularly take care when you are buying the accidental death and dismemberment policy rider when the payout is equal to the life insurance amount. This is because the benefit to the policyholder is based on how the policyholder will die. This is because you will need to know how you will die. The better option is to buy an additional coverage rather than restricting the death benefit amount to a certain kind of death.
Also many deaths are not necessarily because of accidents and thus the benefit of this rider is low.
The long term care insurance rider lets the policyholder add the long term insurance to the life insurance policy that he purchases. These policies are designed to help to pay towards the costs of health care such as medical equipment etc. But these policies are complex.
Conclusion- Do Not Buy A Rider Blindly- Are Life Insurance Riders Worth It
Make sure that you understand the how do riders affect insurance and terms and conditions of the rider before you buy them. It does not make sense to buy a rider just because the insurance agent has asked you to buy the rider. You need to know what the benefits of the rider are and then purchase the one that you think is beneficial for you. Should I take term insurance?
