What is a Life Insurance Rider?

Insurance companies offer riders (options) that can be appended to the insurance plan to enhance insurance coverage. These riders come with specific benefits such as additional coverage against accident, coverage against diagnosis of specific illness, disability etc. Riders need to be purchased separately from the basic policy at an added cost. They help the policyholder customize the insurance plan depending on his / her individual needs. Riders vary by insurance company and costs also vary and depend on many factors, including age, health and type of policy.

Types of riders

Since the privatization of life insurance business in India, a number of riders are offered by life insurance companies, which add value to a policy. Some common riders are:

  1. Accidental death benefit

  2. Critical Illness Policy

  3. Waiver of premium benefit

  4. Double sum assured benefit

  5. Total Permanent Disability Benefit or Total and Partial Permanent Disability Benefit

  6. Terminal Illness Benefit

  7. Long Term Care Benefit

  8. Disability Income Benefit


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