Life insurance riders are additional benefits that can be added to your policy to provide extra coverage and flexibility.
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In simple terms, riders are optional add-ons or features you can add to your life insurance policy; it could be your existing term insurance, whole life insurance, endowment plan, etc. They are highly affordable, meaning you pay a small amount to upgrade your base life insurance coverage.
Let’s understand that your life insurance policy covers death benefit, maturity benefit or both. But riders enhance the scope of your coverage; they offer extra financial protection against risks like coverage for critical illnesses, accidental death benefits, and even income support in case of permanent disability.
In India, there are various types of riders you can choose from. Here are some of the most common ones.
Waiver of Premium Rider
Accidental Death Rider
Critical Illness Rider
Permanent and Partial Disability Rider
Income Benefit Rider
Long-term Care Rider
Guaranteed Insurability Rider
This valuable tool, Waiver of Premium Rider, ensures that if the policyholder can't pay premiums due to income loss or disability, it will waive all future insurance premiums. Not only that, it ensures the policy remains in force throughout its term. On the other hand, disability or non-payment premiums may lead to the nominees not receiving death or maturity benefits.
The Critical Illness Rider provides coverage if the policyholder is diagnosed with a critical illness. This rider typically covers illnesses such as cancer, heart attack, and stroke and provides a lump sum payment to the policyholder in the event of a covered illness.
ACKO Critical Illness Benefit Rider covers 21 critical illnesses, including life-threatening common illnesses among women, such as breast cancer, cervical cancer, fallopian cancer and ovarian cancer.
Cancer of Specified Severity | Benign Brain Tumor |
Myocardial Infarction (First Heart Attack Of Specific Severity) | Blindness |
Open Chest CABG | Deafness |
Open Heart Replacement Or Repair Of Heart Valves | End Stage Lung Failure |
Coma Of Specified Severity | End Stage Liver Failure |
Kidney Failure Requiring Regular Dialysis | Loss Of Speech |
Stroke Resulting In Permanent Symptoms | Loss Of Limbs |
Major Organ /Bone Marrow Transplant | Major Head Trauma |
Permanent Paralysis Of Limbs | Primary (Idiopathic) Pulmonary Hypertension |
Motor Neuron Disease With Permanent Symptoms | Third Degree Burns |
Multiple Sclerosis With Persisting Symptoms |
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The ACKO Critical Illness Benefit Rider offers remarkable flexibility, giving you complete control over your insurance coverage.
Increase or decrease Accidental Death benefit once a year
Increase or decrease the policy term once a year
Change your premium frequency to align with the base policy's premium frequency
Add or delete the rider as needed
It is one of the most affordable riders, purely designed to protect your family with an additional amount in case of accidental death. This Accidental Death Benefit Rider provides a lump sum payment to your beneficiaries/nominees in addition to the death benefit (sum assured) covered by the basic life insurance policy. ACKO Accidental Death Benefit Rider provides comprehensive coverage at an affordable premium that easily fits anyone’s budget.
The Permanent and Disability Rider provides coverage if the policyholder becomes disabled and unable to work. It ensures a regular income to the policyholder, covering the cost of medical treatment and rehabilitation.
ACKO Accidental Total Permanent Disability Rider is designed to protect your financial well-being in case a major accident leaves you permanently unable to work or care for yourself. It offers an extra amount to cover your daily expenses. Additionally, we will waive off all future premiums of your ACKO Life Flexi Term Plan.
The Income Benefit Rider provides additional income if the policyholder becomes disabled and unable to work. This rider can provide a regular income to the policyholder for a set period to maintain the standard of living.
The Long-term Care Rider is an additional benefit that provides coverage for long-term care services such as home health care, nursing home care, or assisted living. This rider is helpful for individuals who anticipate needing long-term care services.
A Guaranteed Insurability Rider is an additional benefit that allows the policyholder to purchase additional coverage later without needing a medical exam or underwriting. This rider is helpful for individuals who may anticipate a change in their health status or financial situation.
Riders make the lives of millions of policyholders in India easier. Opting for these add-ons helps them fulfill their coverage requirements without buying a new policy. That's why they're considered valuable tools.
Here are some of the critical benefits of riders:
Riders are a cost-effective way to enhance your life insurance coverage without having to buy an additional policy.
Riders can be customised to suit your specific requirements. You can add a rider to your insurance policies; endowment, whole life, term plan, etc., or remove it based on your changing needs.
With riders, enjoy comprehensive coverage and peace of mind.
The premium paid for life insurance riders is eligible for tax deductions under Section 80C of the Income Tax Act.
Riders in insurance play a crucial role in addressing your changing financial security needs and ensuring peace of mind. Some of the most common riders in India include:
Extra financial protection to your beneficiaries in case of accidental death.
Waives future premiums if disabled, keeping your policy active.
Coverage for serious illnesses, providing a lump sum payment.
An Income Benefit Rider provides additional income to the policyholder in the event that they become disabled and are unable to work. This rider can provide a regular income to the policyholder for a set period of time, allowing them to maintain their standard of living.
Some common Life Insurance Riders in India include accidental death and disability benefit rider, Critical Illness Rider, waiver of premium rider, and Term Rider.
It is not necessary to purchase a rider with a life insurance policy in India, but it can provide additional protection and peace of mind for the policyholder and their family. It is important to consider the individual needs and circumstances of the policyholder when deciding whether to add a rider to their policy.
Yes, there may be some restrictions on the types of riders that can be added to a life insurance policy in India. For example, some riders may only be available for certain types of policies, such as Term or Whole Life Policies. Additionally, policyholders may need to meet certain age or health requirements to be eligible for certain riders.
The cost of adding a rider to a life insurance policy in India can vary depending on the type of rider and the insurance provider. Riders typically require an additional premium payment, which can increase the overall cost of the policy. It is important to review the terms and conditions of the rider and understand the cost implications before adding it to a policy.
Yes, a rider can be removed from a life insurance policy in India if the policyholder no longer needs or wants the additional coverage. However, it is important to review the terms and conditions of the policy and the rider to understand any penalties or fees that may apply for removing the rider.
Yes, riders are included in the death benefit payout of a life insurance policy in India. If the policyholder dies while the rider is in effect, the beneficiaries will receive the additional coverage provided by the rider in addition to the base death benefit.
Yes, riders can be added to a Group Life Insurance Policy in India. Group policies may offer different types of riders than individual policies, so it is important to review the options and consider the needs of the group members before adding a rider to the policy.
The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.