Riders in insurance policies are blessing from insurance companies but most of us don’t exercise it.
One unpleasant day I met one of my old friend. In our friend circle we used to call him the informed investor. He always reads personal finance article, follow stock market diligently, he does proper analysis before buying any financial product, not only that he also look after his investment and insurance portfolio on a regular interval. Even during college days he had started his mutual fund investments.
It was a shocking news that few months back he had a road accident. Fortunately or I can say he is being an informed investors he had taken an health insurance earlier, thus all his medical expenses reimbursed through that insurance policy, but the plight did not end there. With that accident he lost his limbs and due to that he could not continue the job that he was into, because of his inability of work. This was a big hit to his future income as well.
Why I am telling this pathetic story to you..?? What is the message that I want to convey..??
Though my friend was covered with health insurance, but didn’t exercise full feature available in any of his insurance policies. Along with the basic medical cover he didn’t have additional riders to his insurance such as Accidental Death or Disability Rider etc. Eventually he couldn’t get any further aid from insurance company.
Now the question is how he will continue the existing insurance policies which he had taken earlier and those are still continuing because of their longer term, how will he meet his regular expenses, Loan EMIs etc.??
The solution could have a Rider..!!
Rider is a provision of an insurance policy that is purchased separately from the basic policy and that provides additional benefits at additional cost. Standard policies usually leave little room for modification or customization, beyond choosing deductibles and coverage amounts. Riders help policyholders create insurance products that meet their specific needs.
If he would have opted for riders within his insurance policies like “Waiver of Premium” or “Permanent Disability Benefit” then all his problems would have solved. If not complete at least to extent.
Riders come with very low cost for some specific need of individuals. Choosing riders are not so tedious task. You just need to ensure the requirements are fulfilled. Various riders have their own specific benefits.
Waiver of Premium Rider: This rider gives you a sound sleep after any partial or permanent disability due to accident, means you are no need to pay any future premiums and the policy will be in active mode, and also all benefits will be continued.
Accidental Death Benefit Rider: This rider pays over and above to your base insurance cover when any eventuality takes place. Accidental death in this case means death caused by violent, accidental, external and visible means and independent of any physical or mental illness.
Permanent Disability Benefit: Permanent disability means permanent or immediate inability to work that includes permanent loss of use of two limbs or complete blindness etc. this rider helps you run in any of such unexpected problems.
Critical Illness Rider: Today the medical cost has increased drastically, in this case if there is any major/critical disease the cost touch to sky in any good hospital. To safeguard the huge chunk of expenses towards the critical disease everyone must take critical illness rider with the base policy. Critical illness include the Heart Attack, Cancer, Stroke, Kidney failure, organ transplants, Aorta and Heart Valve surgery etc.
Income Benefit Rider: In case of death of the life assured during the term of the policy, a specific % of the rider sum assured is paid annually to the beneficiary, on each policy anniversary till maturity of the rider ensuring financial independence to dependents.
Riders can be opted at inception of the policy or anytime during the policy term.