Choose the perfect rider for your life insurance policy

Let’s take a look at the types of jumpers available and who should ideally buy these jumpers with life insurance.

A rider is a voluntary addition that you can usually buy with life insurance. Some familiar riders are the Accidental Death Benefit Rider, Waiver of Premium Rider, Income Benefit Rider, Special Exit Value Rider, Premium Break Rider, Rider Insurability Option Guarantee and Critical Illness Benefit Rider.

Accidental death benefit rider: Accidental death riders promise an additional sum of insurance to policyholders in the event of death in an accident. Suppose a base policy offers a sum insured of ??50 lakh, and the policyholder has made use of the accidental death benefit rider to ??10 lakh. On the death of the policyholder, the insurer pays ??60 lakh to the beneficiary beneficiary.

This rider is essential in today’s life as almost everyone needs to travel for their job, business or any other job. “You are probably careful when driving. However, you cannot be sure that others are driving on the road; therefore, this jumper is essential for people traveling between cities, out of town or overseas, ”said Naval Goel, Founder and CEO of

Exemption from the premium rider: Typically, a policy automatically expires when an insured stops paying a premium due to job loss or disability. However, this rider helps a policyholder keep the policy active despite non-payment of the premium in such cases. It maintains the policyholders in accordance with their contract and gives access to all the promised services.

According to industry experts, this rider helps people working in vulnerable environments and who require frequent hospitalizations that affect their income.

Income allowance rider: This rider provides the policyholder’s family with additional income each year in addition to the sum insured. “Breadwinners with large and extended families may opt for this option because sometimes only the sum insured is insufficient for the survival of the family which may include elderly parents, children and a spouse with no source of income. It helps support the insured’s family, Goel said.

Critical illness benefit rider: This rider pays a lump sum upon a valid diagnosis of a critical illness covered by the plan that can be useful to insureds or their families in difficult times.

Anyone with a history of serious illness in the family or who may contract one in the future due to their lifestyle can take this endorsement. Piyush Trivedi, Co-President of Kotak Life Insurance, said: “Given the incidence rates of critical illnesses and the impact of lifestyle-related illnesses, this benefit is relevant for all people, regardless of age. . If we still need to identify a segment, anyone 30 and over should have this coverage. “

Return of the premium endorsement: This rider helps a policyholder get a refund of the total premium paid for term insurance if they survive the term of the policy. But if the policyholder dies during the term of the policy, the sum insured is paid to the nominee.

Most people think term insurance is a waste if they outlive the term of the policy. So, people looking for a return on their survival can buy this jumper. An industry expert said a conservative investor looking for financial security and protection could purchase this rider.

Accidental disability benefit rider: If the policyholder faces permanent or partial disability due to an accident, this rider comes into play. The policyholder can receive a regular salary for the next 5 to 10 years after the accident in a specific percentage of the sum insured. This regular income can function as regular income for the policyholder. Those involved in commuting, driving or cycling can opt for this to ensure that no event caused by an accident causes their families to suffer. Trivedi said: “Again this runner can be taken by all age groups between 18 and 50, with the other runners taken.”

Special output value rider: This rider allows the policyholder the freedom to choose a time to exit a policy and receive all premiums paid for the basic protection benefit. This rider can be used when the policyholder does not take the reimbursement of the premium.

According to Goel, people who believe that their financial responsibilities to their family will be over at retirement age and that their family will not depend on them for finances can use this rider. “This runner is for the masses because it’s free,” he said.

Premium station wagon rider: This rider allows you to free yourself from paying the premium twice during the policy by taking breaks while keeping the policy active. It helps policyholders avoid paying a premium for a year, during which their policy will always cover them. The first break can only be used after 10 years of insurance, if the policy is in force. The policyholder can only exercise the second premium interruption after a minimum of 10 years from the first premium interruption.

According to industry experts, this premium can help policy buyers between the ages of 30 and 35 who want to take a break from paying the insurance premium to meet their other responsibilities such as children’s school fees. or surgery in the future.

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