Importance of Life insurance and Health Insurance has been stressed upon time and again. But, it’s always easier said than done. Insurance companies have come up with varieties of insurance plans to lure customers. Riders are kind of top ups or additional features attached with insurance policies that come at an additional cost. Let us discuss seven such riders which are really beneficial when opted for along with the main insurance plan.
1) Accidental death benefit
As the name suggests, this is a defined sum assured or lump sum benefit given to the policy holder when death occurs due to accident. In such a case, this rider comes along with the usual death benefit that accompanies the main policy. Hence, this rider which comes at a lesser cost gives greater benefit to the policyholder.
2) Partial or Permanent disability
In this rider, the policy holder gets benefit when he/she meets with an accident and undergoes a partial or permanent disability due to the accident. Payment as a percentage of sum assured is made for some period regularly to meet the disability expenses. Permanent disability usually refers to loss of limbs, eye(s), ear(s), etc.
3) Critical illness
This is a one time lump sum benefit rider given when the policy holder is diagnosed with a critical illness disease. Though the definition of critical illness is the same, not all diseases come under this category for all policies. The common diseases which are generally covered are Cancer, Heart attack, Chronic lung disease, Kidney failure, Stroke, Terminal illness, Liver disease, Paralysis, Burns, etc.
4) Waiver of Premium
This is a popular rider benefit that comes with life insurance. It becomes active when the policy holder dies during the tenure of the policy. The family need not pay the remaining premiums needed to keep the policy active and the policy would continue to remain active. The insurance company will compensate for the remaining premiums and waive them for the family of the policy holder.
5) Hospital cash benefit
This is a fixed cash benefit given to the policy holder when he/she is hospitalized. It is usually a fixed per day benefit and not linked to the actual expenses occurred at the hospital. The amount of expense also varies based on the type of hospitalization that happens i.e. General, ICU, Accidental, etc.
6) Surgical hospitalization benefit
This is a lump sum benefit given to the policy holder when there is a need for surgery during hospitalization. Specified surgeries are mentioned in the policy document. There are different types of surgical riders available with various insurance companies based on the number of surgeries covered.
7) Income benefit
This is a life insurance policy rider which becomes active after the death of the policy holder. Usually, the death benefit provided under the insurance policy is a one time benefit. However, this rider makes sure the family continues to receive regular monthly income as a percentage of sum assured till some period.