Buying one insurance plan to cover all your needs is not easy. The reason is that insurance companies provide different benefits in different policies and more often than not, it is not possible to cover all your needs with one policy.
A way to mitigate this issue is by buying policy riders. Policy riders, also known as supplementary benefits, provide additional advantages to the insured person. If the primary policy can meet your main objective and you want to enhance it by adding one or two more benefits, you can always opt for supplementary benefits to customize your plan.
Benefits of adding a rider to your primary insurance policy
Riders can be very beneficial as they provide –
Extra coverage: Riders are meant to provide extra coverage for peace of mind. These benefits cater for various complementary purposes besides the main benefit. For example, if you are critically ill, you and your family might face a loss of income. If you have attached a critical illness rider to your primary policy, the amount you receive can help to defray your household expenses and allow you to continue with your treatment without worrying about your family’s finances.
Reasonable premium: You only pay for what you need. Riders are supplementary benefits which are tied to a main plan, so the premium is lower than if you purchase the same benefit as a standalone benefit.
Option for customization: Riders allow you to customize your own insurance policies. You can add different riders to any type of insurance policy, whether it is a whole life policy, term insurance or endowment plan.
Which rider can you buy?
There are different types of riders which you can buy according to your needs. Here are three key riders to consider:
Waiver of Premium Rider: This rider is usually tied to the diagnosis of critical illness. When the insured person is diagnosed with a critical illness that is covered by this rider, he does not have to pay the premium for the policy any longer. The rider will kick in to pay for the premium, allowing the policy to continue till maturity.
Accidental Death Rider: The cost of an accidental death rider is quite low, which accounts for its popularity. This rider provides additional payout if the life assured dies or become totally and permanently disabled due to an accident. There may be other benefits, such as medical reimbursement or hospital income, under this rider.
Critical Illness Rider: This rider is usually added to a whole life or term life plan. It provides a lump sum payout when the life assured is diagnosed with any of the listed medical conditions.
There are various other riders which you can use to enhance your main insurance policy. These riders are available at a nominal cost and provide peace of mind in times of crisis. Do consider adding these benefits to your main plan.
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