Know These 6 Add-ons That Help You Get the Best Term Insurance

Life is unpredictable. Due to changes in the economy, people often face financial burden. Thus, one should opt for a life insurance plan. The life insurance fulfils every coverage need. The best term insurance plan offers the benefits of coverage with long-term security.

Each policyholder has different requirements during the tenure of the policy. Understanding this perspective, insurers offer riders. In simple words, riders are benefits. These help the policyholder in a difficult situation.

While buying a life insurance plan, a policyholder pays a nominal amount. This is to secure the extra cover. The key benefit of a rider is that it protects the policyholder from situations apart from death. The market is full of different types of life insurance policies. Each type of plan such as the personal term plan or a group term life insurance plan offers benefits.

On the internet, you can find tools which help you to compare plans. You can compare plans based on different parameters like term age, premium. To help you make a smart decision, we have given below a list of riders. Potential policyholders can add these riders in their plan to get full coverage.

  1. Accidental Death Benefit: This type of rider is applicable when the policyholder dies. The person nominated by the policyholder receives the benefit sum. You can calculate the accidental death benefit at the beginning of the policy. It varies from one insurance provider to another.
  2. Critical Illness Benefit: Insurance providers understand the fact that critical illness effects people. It depletes their financial resources. Thus, one should plan for their future. One should also plan for unforeseen situations. Understanding the complex health conditions faced by people, insurers offer critical illness benefit. It keeps the policyholder and their dependents safe from financial strain. During a medical emergency, people use funds for treatment, procedure, and recovery costs. The policyholder receives the critical benefit after they detect the disease. Here the policyholder will get the benefit only if they have added the critical illness. The critical illness rider covers cancer, heart disease, renal failure, and stroke.
  3. Accidental Disability Benefit: You can take this type of benefit in case the insured suffers from permanent disability. The rider benefit supports the policyholder to sustain their family members by providing a portion of the policy’s sum assured upon claim. It can be a valuable addition to your financial plan if you are the sole earning member of the household. In case of an injury leading to disability, the policy would provide financial support that can act as income replacement.
  4. Income Benefit: This type of rider allows the family of the policyholder to avail payments after their death. This benefit is there in the policy documents. The tenure can vary from 5 to 10 years after the policyholder’s death.
  5. Waiver of Premium: This type of benefit allows you to waive off the premium payments. It is only applicable if the policyholder is not able to manage the premiums due to their disability. The family members of the policyholder still hold the right over the coverage. It provides the nominated family member with an assured source of income. One does not face any financial distress.
  6. Accelerated Death Benefit: The accelerated death benefit covers the treatment costs. This type of benefit covers the medical expenses of the policyholder. It is especially important if the policyholder gets ill. It allows the insured to claim a part of their sum assured before maturity. In turn, they can use it for their medical expenditure.

In India, standard life insurance term plan is one of the most uncomplicated financial tools that lets a policyholder secure their future at affordable premium rates. Insurance providers also allow certain level of flexibility by offering various premium payment and pay-out methods along with riders that can boost the security provided by the policy.

Thus, one must invest in riders while buying a term insurance plan. It can be a beneficial supplement to the existing coverage of the plan. The main reason people opt for riders is that it safeguards you and your family members. It is especially useful to deal with financial distress in trying times. Another good thing is that one can avail the plan at low cost for a fixed premium.

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