Life insurance riders you can consider

  • Life Insurance

Did you know that your basic life insurance policy can be upgraded to offer you more benefits? Yes, you read that right. With a wide range of add-on riders to choose from, you can give your life insurance policy a boost and enjoy many more advantages. Want to know what riders are, and what rider options you can choose from? Keep reading for all the details.

What are life insurance riders?

Life insurance riders are basically add-on benefits that you can opt for in addition to your basic life insurance plan. These add-ons provide additional benefits that help enhance the coverage offered by an insurance policy

To get the benefits offered by life insurance add-ons, you need to pay an additional premium. This is over and above the premium that you pay for your main insurance plan. Each rider generally comes with its own sum assured. In case the incident covered by the rider happens, the insurer pays out that rider sum assured to the policyholder.

There are as many as six different types of riders that insurance service providers typically offer. However, this number may vary from one service provider to the other.

What are the different types of life insurance riders that you can consider?

Here’s a closer look at some of the most common life insurance add-ons that you can choose for additional coverage.

1.  Surgical care rider

In case the policyholder has a surgery, this particular life insurance rider offers a lump sum amount to help cover the expenses that they will incur. Usually, the lump sum amount offered by the insurer varies according to the type and the nature of the surgery.

For instance, for major surgeries like a heart bypass surgery, the lump sum amount that you receive through this rider may be higher than what you might get for a minor surgical procedure.

The ABSLI Surgical Care Rider is a very good example of a surgical care rider.

2.  Hospital care rider

The hospital care rider specifically covers the expenses that policyholders incur for hospitalization. This hospital care may be needed for the treatment of a medical condition, disease, or illness. The rider benefit is generally paid out as a daily cash benefit for the number of days of hospitalization.

One of the major advantages of this rider is that the daily cash benefit amount can be modified according to your needs. The rider premium that you would have to pay will differ according to the daily cash benefit amount you choose. Some hospital care riders also offer an additional benefit over and above the basic add-on benefit in case of a stay in the Intensive Care Unit (ICU).

The ABSLI Hospital Care Rider offers all of the above mentioned benefits

3.  Waiver of premium rider

In case the policyholder becomes permanently disabled due to an accident or  illness, their earning ability may be affected. So, it may not be possible to pay future life insurance premiums. Here’s where the waiver of premium rider can be of help.

With this life insurance rider, all of the future life insurance premiums and rider premiums, if any, will automatically be waived off. This means that if the policyholder becomes completely disabled due to an illness or an accident, they will not have to pay the premiums due after that point. This can take a lot of financial pressure off the policyholder.

This life insurance add-on is available with many ABSLI plans in the form of the ABSLI Waiver of Premium Rider.

4.  Accidental death benefit rider

Choosing the accidental death benefit rider is one of the easiest ways to get additional coverage. The rider basically increases the coverage for deaths arising out of accidents.

With this rider, the policyholder’s family not only gets the basic sum assured, but also the chosen rider sum assured in case of the policyholder’s death due to an accident. As with the other riders, the premium for the rider is dependent on the amount of rider sum assured that you choose.

ABSLI offers this rider on its life insurance plans in the form of the ABSLI Accidental Death Benefit Rider Plus.

5.  Accidental death and disability rider

Although quite similar to the previous rider that we saw, the accidental death and disability rider comes with an additional benefit. With this rider, policyholders not only get the rider sum assured for accidental deaths, but also a certain percentage of it for accidental disability. So, if the policyholder suffers from any disability due to an accident, they will receive a certain percentage of the rider sum assured.

The percentage that policyholders will receive for accidental disability depends on the nature and type of disability. That’s not all. It also varies from one insurance service provider to another

ABSLI also offers this life insurance add-on as part of its rider portfolio, in the form of the ABSLI Accidental Death and Disability Rider.

6.  Critical illness rider

One of the most popular life insurance riders out there, the critical illness rider offers additional coverage to policyholders. Here, a lump sum amount is paid out when policyholders are first diagnosed with certain specified critical illnesses.

The rider sum assured is generally paid out to the policyholder after a certain period of time, from when the diagnosis is confirmed. Also, the number of critical illnesses covered by the insurer tends to vary according to the service provider.

The ABSLI Critical Illness Rider is a great example of a rider that covers critical illnesses.

Last words

Now that you’re aware of the different life insurance riders that are available, you will find it easier to choose the rider for your base policy. When considering life insurance add-ons, it's a good idea to stick to only the ones that you’re in need of. Otherwise, you run the risk of increasing your insurance premiums significantly. This can not only put a lot of strain on your finances, but also increase the risk of missing out on payments.

ADV/5/21-22/113

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