What Are Riders or Add-ons ?
Riders or Add-ons are additional benefits that you can opt for with your insurance plan for an extra amount. But then mind you riders cannot be a substitute for health insurance. Riders are the optional contracts, which offer additional benefits for policyholders. They are always attached to a basic policy a person takes. They cannot be bought separately or independently of a basic policy. Each Rider will have its own premium rate and separate policy conditions.
What are the different kinds of Riders available in the market ?
Waiver of Premium Rider/Life Guardian Benefit
Premium is waived off if you are unable to pay premiums in the event of unforeseen calamities and the policy continues to be alive.
What are Critical Illness Rider ?
Critical Illness Riders cover illnesses such as heart attack, stroke, cancer, surgery to coronary arteries. The policyholder is paid the sum assured if he contracts any of the specified illnesses under the rider. But note that the life insured would need to survive the specified illness at least 30 days from the date of diagnosis to be eligible for this Rider benefit. The policy along with all the riders (to the extent of the Rider Sum Assured) is then terminated. But your base policy would continue and you would have to continue to pay premiums on it.
What are Accidental Death and Dismemberment Rider ?
Most insurers pay 100% of the coverage face amount in case of death due to accident. Also in case of loss of more than one limb or sight in both eyes or loss of one limb and sight in one eye 100% of the coverage amount paid in case of loss of. 50% of the coverage face amount is paid in case of loss of one limb or sight in one eye. Rider cover terminates once all or part of the coverage is paid. Exclusion – There may be exclusions to the Policy offered by different Insurance companies. Please read the fine prints of exclusions before buying a Rider.
Tax Benefit available on Riders
Rebate under Section 88 and maturity benefit under Section 10(10 D).