Getting term insurance is undoubtedly a smart move for your financial portfolio. It goes a long way towards securing your family’s financial future. The sum assured or death benefit paid out by the policy in case of your unfortunate demise within the policy period will help your dependents cover their future expenses (ranging from household costs to loan repayments and higher education) without any difficulties.
Now, it is important to estimate the right coverage for your needs and that’s where a term insurance calculator can come in handy. Along with that, you should aim to make your policy more comprehensive in terms of protection. This is where riders come in useful. They are vital add-ons that offer financial protection for various kinds of situations and mishaps. Let us learn more about some of the best ones worth adding to your term plan.
Riders that You Can Add to Your Term Insurance Plan
There are various kinds of riders that you can consider adding to your term insurance plan for maximum protection and coverage. Riders are important, since they offer financial coverage for various untoward and sudden situations that may affect the policyholder and the family members at large. So, what are some of these riders that are worth considering for your policy? Let’s take a closer look at them below.
- Critical illness- This is a helpful rider to have with your policy. It pays a lump sum amount upon the diagnosis of any listed critical illness, irrespective of the actual cost of treatment. This can help you treat the illness, while working as an income support or replacement for the family in this period.
- Accidental disability- In case you are paralyzed fully or partially by any accident, the rider will pay out an amount that the family can use to replace your lost income in this period.
- Accidental death benefit- This rider pays out an additional sum assured which is over and above the death benefit of the base term plan. It is worth considering for those who commute on highways over long distances or work in riskier occupations.
- Waiver of premium- If the policyholder is fully or partially disabled or is unable to work due to any critical illness, this rider waives off all future premiums for him/her. Your family members will benefit from continued coverage and benefits without having to pay the premiums in this scenario.
- Income benefit- In place of a lump sum, your family will get a specific monthly or annual income for a particular duration in case of your demise.
Choose Riders Smartly Based On Your Needs
You should choose your riders smartly, depending on your lifestyle, the nature of your occupation, and your own fears/anxieties. Tools like term insurance calculators can help you choose the best rider combinations depending on your specific preferences. It will also help you estimate the coverage you require and the premium payable for the same (approximate), which you should be able to afford smoothly. So, choose the right riders to transform your basic term plan into a comprehensive coverage safety net for your family today.
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