3 Reasons To Get A Rider With Your Term Plan
Author: Naveen Kumar
They are may be like the tail of a creature but can be immensely useful. We are referring to riders provided in life insurance plans by life insurance companies. Riders provide insurance protection for events like accident and critical illness, among others. The riders provide a wider insurance coverage to protect your family. While riders can be attached to any life insurance policy, when they are attached to a term plan, they can provide some special advantages. This is over and above the advantage of term plans providing a large life insurance cover at affordable premiu
How life insurance doesn’t help after accidents There is double financial jeopardy when you are involved in a major accident. Your income not only might get disrupted but there would be medical expenses in immediate treatment and during the period of rehabilitation. An accident rider can help your family absorb such a shock.
Your family needs protection from income risks A major accident leading to a permanent disability prevents you from financially contributing to your family. You need help you take care of future needs like child’s higher education. A rider like waiver of premium on disability due to an accident and disability income rider that provides income, helps you address such a situation.
Financial protection from critical illnesses If you suffer from a critical illness, you are sure to spend a lot of money of treatment. This will not only use up your family income but is also likely to deplete savings. A critical illness rider can provide the payout your family needs to meet the expenses and honour obligations like loan EMIs.
A life insurance policy protects your family against an unfortunate event of your death. However, your family also needs protection from other eventualities like accidental disability, loss of income and critical illnesses. A life insurance plan doesn’t cover them. Adding riders to your term policy will help you protect your family against a wider range of risks and ensure your peace of mind.
