Rider Benefits to Avail on Your Term Insurance Plan

Rider Benefits to Avail on Your Term Insurance Plan

Term insurance helps you protect your loved ones financially after your sudden demise. Ideally, the policy is known to provide a lump sum amount to the dependents in case the policyholder dies. However, insurers in India offer different variants of term insurance plans to the audience.

The term insurance variants available in the market allow you to enhance the scope of policy with rider benefits. In this section, we have enlisted some add-on covers that you can opt for when buying term insurance in India.

  1. Accidental Death Benefit Rider

The accidental death benefit cover provides additional compensation over and above your existing term insurance coverage. So, in case you (the policyholder) die in an accident, then your nominees will receive the term insurance death benefit as well as accidental death benefit as well.

For instance, let us assume you purchased a term plan with Rs. 1 Crore coverage and accidental death benefit of Rs. 25 Lakh. If you die an accidental death during the policy tenure, your dependents can claim Rs. 1.25 Crore as the total death benefit.

  1. Accidental Permanent Total/Partial Disability Benefit Rider

Accidents do not always lead to death. But at times, it can leave a person partially or totally disabled. It thus limits their capability to earn a living for themselves and their family. With accidental permanent total/partial disability benefit on your term insurance plan, you will receive immediate financial help that can be used to cover the medical expenses as well as other financial liabilities.

  1. Critical Illness Benefit Rider

The critical illness benefit is an add-on cover that provides a lump sum amount to the insured when they are first diagnosed with any of the listed critical illnesses. Some of the common critical health issues covered under the term insurance critical illness benefit are heart and artery diseases, major organ transplant, cancer, etc.

With this cover, the insured no longer has to worry about the treatment and hospitalisation expenses. Plus, it also ensures that their loved ones are financially protected if anything was to happen to the policyholder.

  1. Waiver of Premium Benefit Rider

If in the event of critical illness or permanent total disablement, it can so happen that the insured might be unable to pay the term insurance premiums. With a waiver of premium benefit, all the future premium payments of the term insurance plan are waived due to such contingencies. The policy will remain active until the end of its tenure and will pay the death benefit if anything were to happen to the policyholder during the term.

The absence of this rider benefit will lead to policy lapse if the insured is unable to pay the premiums. Further, it may cause financial crises for the insured and his/her family. So, to avoid putting yourself and your family in such hardship, it is wise to opt term insurance with a waiver of premium benefit.


If you are wondering how much a term insurance plan with rider benefits will cost you, there is an easy way to determine this. Use the term insurance calculator to know the premiums charged on your desired coverage and opted rider benefits. No matter what, ensure that you pick the rider benefits that will come in handy in the future.

Maria Fernsby

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