How to Smartly Customise Life Insurance Policy with Riders

Riders in life insurance policies are defined as an attachment to an existing policy that provides coverage in addition to the main insurance plan. Riders are designed to strengthen an insurance policy by providing additional benefits apart from a death benefit. Benefits of riders and their costs vary from rider to rider. Often you will be required to pay an additional premium for any rider you add on to your policy. There are several types of insurance riders available to you which essentially just help you add new benefits to an existing life insurance policy.

1. Accidental Death Benefit Rider
   Adding this rider will ensure that if during the term of the policy, the insured passes away in an accident the nominee will receive an additional sum assured. The amount of this additional sum assured varies from insurer to insurer. Some insurance policies may also put a cap on the maximum sum assured you are allowed on this rider. It is important to remember that if the death of the policyholder is not due to an accident the nominee will still receive the basic sum assured of the policy. He/she will just not receive the additional sum assured of the rider.
2. Terminal illness Rider
   If a policyholder has opted for terminal illness rider, they can obtain part of the sum assured of the policy when policyholder is diagnosed with a terminal illness. The cost of hospitalization and medical treatment in the case of terminal illnesses is quite high and can take a toll on the finances of the family. This insurance rider allows the policyholder’s family to use part of the sum assured in paying for their treatment and costs. The rider can be availed by paying an additional premium.  
3.  Critical Illness Benefit Rider
   If a policyholder opts for this rider, they receive a lump sum amount if they are diagnosed with critical illnesses which are defined under the policy terms and conditions. Usually, critical illnesses covered by the rider are cancer, heart attack, stroke, paralysis, kidney failure, organ transplant. The coverage provided after the lump sum has been paid, varies from policy to policy.
4. Accidental Disability Benefit Rider     
   This insurance rider comes into effect if the policyholder has an accident which leaves them disabled (partially or permanently). Depending upon the life insurance policy, the policyholder usually gets a percentage of the sum assured or full sum assured depending on the type of disability. It is important to note that the rider is only valid if the policyholder’s disability was caused by an accident. 
5. Waiver of Premium Rider
   If a policyholder is unable to pay any future premiums due to disability or Critical illness, under this rider all their future premiums are waived off. However, the policy will remain active until its expiry date and the benefits will continue to be paid as under an in-force policy. If a policyholder doesn’t have this rider, in case of failure to pay premiums the policy expires, and no benefit is paid.

Riders to life insurance policies are designed to provide additional coverage and make your life insurance policy suitable to your needs and desires. When deciding what riders, you should add to your policy, you should carefully understand the coverage provided by them as this can vary from insurer to insurer. While no one can predict or prevent accidents or illnesses, riders help us in protecting our loved ones and their financial future in case something goes wrong. Riders are critical in ensuring that you have a contingency plan in place and give you peace of mind that your loved ones will be taken care of no matter what happens.

To know more about term plan & term insurance, visit PNB MetLife website.