Riders on Online Term Insurance Plans In India

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Riders on Online Term Insurance Plans In India
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• There are several riders available on all types
  of insurance policies. Here, we will discuss the
  ones that are available on a term insurance plan
  and recommend which one you should take.
• Term Insurance Riders
• Term insurance is the purest form of insurance.
  That is, there is only death benefit if the
  policyholder dies, the sum assured is given to
  the nominee. There are no maturity or survival
  benefits in terms of returns or bonus. When a
  term is bought with rider(s), the nominee gets an
  extra sum over and above the sum assured in case
  of policyholders death.
• Lets understand which riders a policyholder can
  opt with the a term insurance policy. A detailed
  know-how of these riders would help you to take a
  wise decision.

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• Accidental Death Benefit (ADB)
• Under this rider, if the life insured dies in an
  accident, the nominee will get an additional
  amount, apart from the sum assured. Now, most
  term insurance buyers often think unless they
  take this rider, the nominee will not get the sum
  assured in the eventuality of policyholders
  death due to accident. Well, the fact is that
  term insurance covers accidental death, whether
  this rider is taken or not.
• Critical Illness Benefit (CIB)
• This rider gives an additional amount (usually
  equal to sum assured) in case the life insured is
  diagnosed with a critical illness as specified in
  the policy document. Generally, most insurance
  companies cover cancer, heart attack, kidney
  failure, stroke, major organ failure, paralysis
  and Coronary Artery Bypass Graft Surgery (CABG),
  among a few others scope of critical illnesses.

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• Disability Income Benefit (DIB)
• The basic premise of Online Term Insurance Plans
  In India plan is based on the fact that the sum
  assured is paid if and only the life insured
  dies. However, if a DIB rider is taken, the life
  insured will get a regular income from his policy
  in case he becomes disabled. Hence, this rider is
  also known as Partial and Permanent Disability
  rider.
• This rider assumes that the life insured is no
  longer in physical capacity to earn due to
  disability which can be partial or total. The
  policyholder a fixed percentage of the sum
  assured at regular intervals for a fixed period
  of time to replace the loss of his income.
  Depending on the severity of disability, the
  policyholder may also get full sum assured as
  lump sum and the policy will get terminated.
• The definition of disability varies from one
  company to another. Please ensure you understand
  the definition before taking this rider.
• Many insurance companies club this rider with ADB
  rider, so do your research properly.

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• Waiver of Premium (WOP)
• If the life insured is diagnosed with a critical
  illness or becomes disabled, he might be in a
  position to pay future premiums as his regular
  income will cease to generate. The insurance
  company will waive of the payment of future
  premiums without changing the sum assured and
  other features of the policy. So, not only there
  is a waiver of premium during the survival of the
  life insured, there will be also death benefit
  for the nominee in case of life insureds death.
• Which Rider is the Best for You?
• The type of rider and the sum assured on the
  rider you take depends on your age, occupation,
  frequency of travel and medical history. Your
  financial capacity to pay extra premium over and
  above the base premium should also be taken into
  consideration.
• We always recommend simple term plans with NO
  riders. For critical illness and accident
  coverage it might be prudent to compare the price
  of these riders with personal accident insurance
  as well as critical illness plans sold separately
  by many general insurers like Bajaj Allianz.

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