The 8 Types of Riders Available on Life Insurance Policies

When it comes to Assurance vie, there are a few different types of riders that you can choose from. We will discuss the eight most common riders available on life insurance policies. Each of these riders has unique benefits, so it is essential to understand what each one offers before deciding. Let’s get started!

Types of Life Insurance Riders

Different types of insurance cover individuals in different ways. The following are some of the most common life insurance riders:

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Accidental Death Benefit Rider

The Accidental Death Benefit rider would offer a sum of money to the nominee if the life assured dies in an accident. If the life assured does not die right away from the accident, the insurance company will give them a certain amount of time to receive the benefits. If the insured person dies within 120-180 days after the accident, the nominee will receive the amount of money.

Accelerated Death Benefit Rider

When an insurance policy’s death benefit rider is triggered, the assurance vie company must pay out a portion of the sum assured in advance if the life insured is diagnosed with a terminal illness. The money that may be obtained can be used to treat life assurance. If the life assured dies due to a terminal illness, such as cancer or heart problems, kidney failure, or paralysis, during the policy term, the remaining amount assured would be paid to their family.

Term Rider

Regarding rider, if the policyholder/insured dies at any time, the nominee will be paid a monthly income or a lump sum. The amount of rider benefit may be equivalent to the assurance vie coverage base plan or a pre-determined sum stated in the policy.

Hospital Cash Rider

If the policyholder/insured is taken to the hospital for treatment, they will receive a fixed benefit from the Hospital Cash rider, which is determined by the per-day cost of the stay.

Surgical Care Rider

In the Surgical Care rider, if a policyholder/insured must undergo an unavoidable medical operation in India, they will receive a lump sum as a rider benefit from the insurance firm. The rider benefit varies based on each sort of operation.

Accidental Total and Permanent Disability Rider

The rider benefit is an accidental total and permanent disability insurance policy’s addendum that pays the life assured if they get permanently disabled due to an accident, preventing them from working and paying premiums. This rider generally comes with the Accidental Death Benefit addendum.

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Critical Illness Rider

The Critical Illness rider is the most common because it covers major critical illnesses such as heart diseases, tumors, cancer, organ failure, etc. Before purchasing this rider, it is essential to verify that you have been diagnosed with any of the listed critical illnesses since these are included in the terms and conditions of each insurance provider.

Some insurance companies offer a rider benefit if you are diagnosed with one of the listed critical illnesses. However, it is advised that you do not consume tobacco or alcohol regularly.

Waiver of Premium Rider

All future premiums would be erased if the life insured is disabled by accident, preventing them from paying further premiums on their life insurance policy. Even after taking advantage of the waiver of premium rider, this benefit allows the life insured to take advantage of the policy’s benefits.