Riders on Term Insurance Plans

1
Riders on Term Insurance Plans
2

• IRDAI defines riders as add-on options
  (Benefits) that can be added to a basic Life
  Insurance Policy to provide additional
  coverage. Riders can help to customize your
  insurance policy based on your personal needs and
  coverage requirement. You can take riders at the
  time of taking the basic policy, however, some
  insurance companies allow to opt for them during
  the tenure of the policy. Riders come with a
  cost, so they increase the total premium to be
  paid on the policy. Some riders are in-built in
  the base policy, while others are offered as
  stand-alone from the base policy.
• The premium paid on riders is added to the base
  premium of the policy and, thereby, it becomes
  eligible for deduction under section 80C.
• 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 should you take.

3

• 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.

4

• 1. 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.

5

• 2. 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.

6

• 3. Disability Income Benefit (DIB)
• The basic premise of term 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.

7

• Many insurance companies club this rider with ADB
  rider, so do your research properly.
• 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.

8
Follow us on
https//www.facebook.com/bajajallianzlifeinsurance
ltd
https//www.linkedin.com/company/bajaj-allianz-lif
e-insurance-co-ltd-
http//plus.google.com/bajajallianz/posts
https//twitter.com/bajajallianzLIC
https//www.youtube.com/user/jiyobefikar
https//instagram.com/bajajallianzlifeinsurance
9
Click to know more on Term plan
https//www.bajajallianz.com/Corp/term-insurance/i
secure-insurance-plan.jsp
Thank You