Buying a life insurance policy in itself shows that you care for your family and your loved ones. This is a big relief because you know that your family and loved ones would be protected when you are not there. Death could occur at any time and being prepared for it financially helps in a big way and offers peace of mind.
The best way to add some additional features to your life insurance policy is to add some riders to it. There are many kinds of riders and you need to choose what you think is best for you. This will let you design your own insurance policy to make it more comprehensive.
Riders Are Important When Buying A Term Insurance Policy – what is rider in term insurance
There are many kinds of riders benefit offered in term insurance policies and you need to choose form them. This is important because it gives an additional coverage over the protection offered by the term insurance policy. This is important to increase the coverage of your insurance plan. You can buy these riders any time while purchasing the insurance policy or even post buying them. You would however have to pay an additional premium to buy the insurance plan.
There are many riders available that helps to complement your plan.
Accident Death Benefit Rider
Accidental death benefit rider provides death coverage to the nominee of the policy in case there is an accidental demise of the insured person. When you buy this rider then you get an additional benefit over and above the lump sum amount that you get on the term plan. Accident is something that is unforeseen and sudden and this could lead to a disability that is permanent or even leads to death.
The death or disability could be because of an accident. When you talk about a disability it is something that makes the policyholder to not perform his daily activities and this results in a great income loss for the family. In case of a disability then the policyholder will be paid installments all through his life. In case the beneficiary has to claim the entire amount which could be because of death then the remaining death benefit of term insurance with accidental death and permanent disability rider benefit will be paid.
Critical Illness Rider
When someone has any critical illness then he would have to undergo treatments regularly. This causes the persons a loss to his existing finances. This may also affect the income that the person earns.
The critical illness rider helps to reduce this financial burden in case the insured is detected with some critical illness. The rider is to be purchased along with the term plan. The benefit of the critical illness is paid only at once but it is important that the term policy is still active. Thus one needs to ensure that all the premium payments are done on time. There are number critical illnesses covered under the plan.
It is important that the policyholder submits the important medical documents while claiming the critical illness rider.
Waiver Benefit Rider
In case the policyholder is unable to pay the term insurance premium amount because of an income loss which could be because of a disability then the future premium payments of the policy are waved off. Thus the term insurance coverage will still carry on and the policyholder will not have to pay the premiums henceforth.
You Need To Take This Tough Decision
Well it could seem to be a tough choice on whether or not to buy a rider along with the term insurance policy. The riders are indeed beneficial to purchase because it helps you to get a better coverage. However you may not need all of them so take care that you choose the riders carefully.
Choosing the best term insurance plan is also not that easy. With so many options available today you need to make an informed purchase. So compare the term insurance policies on the comparison websites and then buy them as per your need.
Riders Attract An Extra Premium Amount
You buy a term insurance plan and your agent starts to sell you riders. Should you or should you not buy them? There are certain features that you need to pay attention on along with the insurance premium amount. This is because you will need to pay an extra amount for extra coverage.
Are these riders important to buy? Different rider benefits have different features and it is important that you understand what they offer to you. Just do not buy a rider because your agent tells you to do so. You need to understand and be sure yourself whether you really need the riders or not.
The term insurance plan has no frills
The term insurance policies are the no frill insurance plans that offer pure life cover.
You get the life cover for a certain time period. When you buy a term insurance plan the sum assured amount is paid to the nominees whom you select to get the lump sum payment amount in the case of any contingency.
This makes term insurance a very preferred option. It gives you a high sum assured for a very less amount of premium. But in case you live beyond the period of the term insurance policy then what happens to all the money that you have been paying for all these years?
The term insurance plan has no maturity benefit so the money that you paid towards the insurance plan goes away, but then who wants to die early?
The main aim of a term insurance plan is to offer you a life cover. It is a plan that offers pure protection and all that you need to do is to keep the policy active by making payments towards the term plan in the form of premium. The sum assured amount gets paid to your nominees in case something happens to you.
Your nominees are free to use the sum assured amount the way they want to.
Term insurance also lets you choose the riders – term rider meaning in insurance
As there is wide range of term insurance plans available in the market, it is important to compare term insurance plans 2018 online and zero in on a policy. Riders are the add-on features whichgives you an additional coverage over and above what the term insurance policy offers to you.
To get the benefit of this rider you will have to pay an extra premium amount. But you need to understand what the riders are offering to you and whether you should really be paying extra towards these riders.
This is however dependent on an individual’s needs and liabilities.
Should you or should you not opt for the term insurance rider
Now that you know the basics of how the term insurance rider actually woks you can decide by yourself whether you should be buying riders along with the term insurance plan or not. When you buy these riders then they definitely enhance the amount of coverage that you get but make sure to keep in mind the other important aspects of purchasing rider benefit.
You should check the features of the riders offered under a plan and understand what is best suited for you. If you think that the rider could benefit you then definitely buy them. It is important to research, compare and read all the wordings of the policy before you buy the rider. There could be many terms and conditions attached and thus you need to know them before you make the purchase.
You could also get in touch with your financial advisor who could guide you on which riders you should purchase.
Conclusion – Buy The Riders But Decide For Yourself
The riders that you buy with the term insurance plans are very cost effective. Insurance is a must as it protects your family at different life stages.
Term plan with critical illness and disability rider are basically add-ons to the insurance policy and you need to buy them based on your own specific needs. This is something that you buy with the insurance policy. The benefits that you receive are over and above the base policy coverage. When you buy the rider you are able to customize your term insurance plan to buy a comprehensive coverage.
Instead of buying an insurance plan for every extra feature that you wish for, it is best to buy the riders. Riders let you design your own insurance plan. So make sure that you make full use of them. There are also many riders that you may not find of any use. If that is the case then you can leave them out and pick and choose those that will benefit you.
If you are looking for a single plan term rider meaning that could offer you many benefits then it is the term insurance plan. The plan gives you pure risk cover and on top of that gives you complete flexibility to tailor make your own insurance coverage. So it is important that you do not blindly buy the rider nor look past them. Understand what they are and how could they benefit you. By keeping all the important factors in mind you can choose them carefully.