In today’s day and age, term life insurance is inevitable. Life is unpredictable and term insurance makes sure your family is financially protected even if you have to leave them behind.
What is a term insurance?
Term insurance means insurance for life. It pays to the beneficiary the insured amount in case of an unfortunate expiration of the insured. This helps the rest of the family financially stay afloat after losing an earning member of the household.
Riders for term insurance
While your term insurance itself is inevitable and important, there are riders that you can add to your insurance plan to increase your protection. These add-ons are called riders.
Let’s take a look at some of the most popular term insurance riders:
- Guaranteed insurability rider
This rider allows you to extend your life insurance policy’s cover without a second medical examination. This rider can ensure that you will stay insured for a longer period of time.
When you are getting a new insurance, your insurer may ask you for some medical details. This helps the insurance company calculate the risk and fix a premium for you.
These details may include
- Blood and urine test
- Blood pressure
- BMI
- A questionnaire to determine how healthy your lifestyle is.
Healthier a person, lower the insurance cost. Here, guaranteed insurability rider allows you to extend your medical insurance to a set date without a second medical exam.
- Waiver of premium rider
Waiver of premium rider makes sure that you are able to keep your term insurance policy even in a stage where you can’t continue to pay your premiums. It waives off your premiums if you become critically ill or disabled during the course of the insurance period.
- Accidental death rider
This rider provides an additional financial help if the insured passes away by an accident. There are policies that offer even double the amount of the insured sum in case of an accident if the rider is added.
Accidental death rider could be something that you can consider if you work in a risky environment, such as operating a heavy machinery.
There are some situations where this rider would become void like –
- Injury while working in armed forces
- Injury sustained in a war
- Self-inflected injuries/Suicides
- Injuries during an illegal activity
- Injuries while practising a dangerous hobby such as sky diving.
- Accelerated death benefit rider
An accelerated death benefit rider makes you eligible for a portion of your insured sum if you are diagnosed with a terminal illness that shortens your life span.
This rider allows the insured to maintain their quality of life during their last days while protecting their family after their demise as well. The insurer will either pay in a lump sum or as a monthly payment.
At the same time, claiming this benefit could reduce the amount the beneficiary will receive after the insured passes away.
- Long-term care rider
With this rider, your insurance company will pay to you a monthly sum if you have to stay in a long-term care facility like a nursing home. This is usually meant for people who unfortunately suffer from conditions such as Alzheimer’s, which prevents them from performing even the daily activities of living.
If this rider is exercised, the insured sum the beneficiary receives after the insured’s passing away will be reduced.
- Return of premium rider
A return of premium rider refunds the premium amount if the insured doesn’t pass away during the period of the insurance. Adding this rider could increase your premiums substantially.
How to add riders to your term insurance?
If you already have an insurance policy, contact your insurance provider and according to your insurer’s policy, they may allow you to add a rider.
If you are taking a new term insurance, you will be given the option to choose the rider options you want, when you sign up itself.
Having a term life insurance is of utmost importance, doesn’t matter your age or health. A proper term insurance means your family is protected even in the most unfortunate situation. Make sure you don’t leave it to chance. Purchase your term insurance today!
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