Just like any insurance plan, a term insurance offers death coverage. This coverage is in the form of sum assured, which is a lump sum amount paid to the nominee upon the policyholder’s death. However, apart from the death benefits, some insurance providers also offer additional riders in their term insurance plan.

The 6 common term insurance riders offered in the Indian market are–

Accidental Death Rider

In case a policyholder dies due to accident, the accidental death rider offers additional benefit on the sum assured amount. However, a lot of people often confuse the benefit of this rider thinking that the death cover benefit will only be granted to the nominee if the policyholder dies of an accident. However, that is not the case. Even if the policyholder does not buy an accidental death rider, the basic sum assured will be paid to the nominee as per the term insurance policy.

Critical Illness Rider

Under the critical illness rider, you are paid a lump sum amount if you are diagnosed with any critical illness mentioned in the term insurance plan. Some of the critical illness covered under this rider include heart attack, cancer, diabetes, hypertension, and kidney failure. The treatment costs of such critical illnesses can cause a lot of financial as well as an emotional strain for the policyholder and his/her family members. In such a case, having a critical illness rider with the term insurance plan can help solve all the financial troubles. Once any critical illness is detected, the money gets disbursed, and the policy might get terminated or continue, depending on the terms and conditions of the term insurance plan.

Total/ Partial Disability Rider

If the policyholder develops any disability (either partial or complete) because of any medical condition or accident, this rider offers a lump sum amount to the policyholder. This amount can prove useful if the disability hampers the policyholder from working a job and earning a steady source of income. Some term insurance benefits upon such type of riders also include a waiver from further premium payments, while keeping the policy still active.

Income Benefit Rider

The income benefit rider provides a special provision for the policyholder’s family, in case of the untimely death of the policyholder during the policy tenure. Under this rider, the family members become eligible for supplementary annual income for a term of 5-10 years. This rider can prove useful for policyholders who have young children or who are the sole earning members of their family.

Waiver of Premium Rider

The waiver of premium rider is a special provision granted to continue the term insurance policy even if the policyholder falters on any of the premium payments due to loss of income or any disability. This rider grants a waiver on future premiums while keeping the policy active. However, not all insurance providers offer this rider. Thus, in case you buy term insurance without this rider and fail to pay the premium on time, the term insurance plan might get terminated.

Women’s critical illness rider

Some insurance providers offer special riders for women policyholders. Under these special riders, the insurance companies cover women-related disease conditions such as-

• Cancer of female organs
• Pregnancy-related treatment and complications

Having an additional rider along with your term insurance plan offers additional sum assured as well as more financial security for your family members. However, not all insurance providers will offer the same riders with their term insurance plans. Hence, before buying any additional rider, make sure you go through the term plans offered and decide whether they fit into your future financial goals or not.