The investors and finance experts always advise having riders on term plan. Riders are the amendments, attachments to the term plan that will provide the policyholder with additional coverage. The primary objective of the rider is to strengthen the term plan by providing other benefits. The financial experts have always stated that getting a rider for your term plan will beneficial in the future. So let us see why financial experts insist us to get the rider on term insurance policy.
- To get the accelerated death benefit
The patient’s family need to spend a hefty amount on patient’s treatment and costs associated with it if he is suffering from a critical disease. It leads to financial instability to an already troubled family. If the patient has opted for accelerated death benefit rider, then the family will get a sum assured in advance. The sum assured will be specified in the rider. In addition to that, the rider comes at a very low cost.
- To get critical illness insurance
This type of rider is exceptionally beneficial in critical diseases. The policyholder will be receiving a lump sum amount on a ‘valid diagnosis’ of the critical disease that is pre-specified in the plan. It includes diseases like heart attack, stroke, kidney failure, major organ transplant, cancer, paralysis, and coronary artery bypass graft surgery etc. As and when the disease is diagnosed, the policyholder can either continue the policy or terminate it.
- To get an accidental disability benefit
If the policyholder suffers an accident and gets partially or permanently disabled, then he/she will get paid under the rider’s benefits. The rider will pay the policyholder regularly next five to ten years in a certain percentage of the sum assured. One thing should be noted that this rider comes with accidental death rider. Also, you should understand that this rider will only pay the policyholder if the disability has occurred due to an accident.
- To get the waiver on premium
If the policyholder is unable to pay the future premiums due to disability or income loss, the future premiums are waived off. The policy remains active even after that. However, in the absence of this rider, if the premiums are not paid then, the policy will expire.
It is quite apparent that riders are extremely beneficial when it comes to the term plan. If you have to choose one, then you can go for term insurance with critical illness. The critical diseases like cancer and heart attack bring substantial medical expenses. In that case, having essential illness cover is always beneficial.
We know how the term policy is crucial, but you can get best out of it with the rider. The market has a plethora of options, so choose according to your requirement.