While applying online for a term insurance policy, you must have noticed the option of adding riders. A rider is a provision under a term insurance policy to let you add more benefits to a basic policy to get extra coverage. As such, here are the six most important riders that you can think of adding to the policy.
- Kotak Accidental Death Benefit Rider
When you calculate term insurance premium, if the policyholder meets with their demise due to an accident, then the beneficiary gets an additional sum assured under this rider. The policyholder must pay an additional, fixed premium every month to get this rider. Without this rider, the beneficiary will still get the sum assured under the policy. This will add an extra amount to that sum assured. So, it’s best to add such riders to enhance your life cover.
- Accelerated Death Benefit Rider
In case the policyholder becomes terminally ill, the family must face the burden of surmounting costs. Considering the cost of hospitalization and medical bills, a considerable sum is necessary to get the family to sail through. This is where the Accelerated Death Benefit Rider comes into the picture. As per this rider, the family gets a part of the sum assured in advance.
- Accidental Disability Benefit Rider
This rider comes into effect when the policyholder meets with an accident that renders them permanently or partially disabled. Remember that this rider will only be effective if the disability is due to an accident and not when it is due to any self-inflicted injury. This is basically an income replacement rider that pays a regular sum of money to the policyholder for the next five to ten years.
- Critical Illness Benefit Rider
A critical illness rider offers additional financial aid if the policyholder is diagnosed with a critical illness that makes them unable to work. A critical illness not only means major financial pressure on the family but also makes the person unable to work and earn monthly wages. This rider, similar to the previous one, acts as a type of income replacement for the policyholder.
- Income Benefit Rider
This rider is meant to offer additional financial support to the family of the policyholder after his untimely death. As per this rider, the family gets an additional sum as regular monthly income for a predetermined period of five to ten years. They also get the sum assured as promised in the policy.
- Waiver of Premium Rider
With this rider, if the policyholder faces a loss of income due to critical illness or permanent disability, then all the pending premiums are waived off by the insurance company. The premiums are considered to have been paid in full.
You can choose one or more of these riders and add them to your policy based on your budget for the monthly premium.
Click here to know more about Kotak Term Insurance Plan: https://www.kotaklife.com/online-plans/online-term-insurance-plans