A rider is a provision of a life insurance policy that provides additional protection against risk.Policy riders can be purchased separately from the basic insurance policy.Standard life insurance policies allow very little scope for modification and / or customization.Riders, if selected carefully based on informed decisions can add a great amount of value to the life insurance cover of the insured.
Individuals can simply buy any basic policy and add riders that meet their specific requirements.Riders aid policyholders to create insurance products that suits their distinct needs.
Some great riders that are being offered by life insurance companies are as follows-
1. Waiver of Premium Benefit Rider :In case of accidental death or permanent disability, the remaining premium that the insured is due to pay are waived off.The insured gets the benefits of the insurance policy as and when due.
2. Critical Illness / Dreaded Disease Benefit Rider :This rider provides an additional sum assured in case the insured is diagnosed with a critical illness for the first time.Bajaj Allianz Critical Illness Benefit Rider covers 11 critical illnesses.
3.Accelerated Death Benefit Rider :In the event that the insured has been diagnosed with a critical illness or if the insured needs long term care, this rider allows him to collect either part or full payment of the life insurance proceeds.
4.Additional Accidental Death Rider :This rider provides the insured with the benefit of an additional sum assured in case of death by accident.
5.Spouses and Children Insurance Rider :This rider provides the insured coverage for spouse and / or children, for an additional charge or for a higher premium value.
6.Guaranteed Purchase Option :This rider guarantees that the insured will be allowed to purchase additional insurance at regular intervals without any medical examination up to a certain age.
7.Daily Cash Allowance :This rider provides the family of the insured with a daily fixed cash allowance in the event of certain specific occurrences mentioned in the terms and conditions and differs from one insurance provider to another.
8.Loss of Employment Rider :Loss of employment rider provides the insured with a monthly allowance in the event of the insured losing his job and / or permanent means of employment.
9.Disability Rider :Disability rider pays the insured a fixed sum of money on a monthly basis in the event that the insured is accidentally disabled.
10.Double Indemnity Rider :This rider pays double or in some cases, even triple of the sum assured if the case of death is accidental.
11.Family Income Benefit Rider :This rider provides the insured with benefit of 1% of the sum assured that is payable monthly.This is allowed in the occurrence of accidental permanent disability, first diagnosis of specified critical illness and / or death. Bajaj Allianz Family Income Benefit Rider is a good option if one is looking for a rider of this variety.
12.Long Term Care Rider :Long term care rider applies in the unfortunate event of the insured requiring long term care either in a facility or even at home.Premium, in this rider is usually paid monthly.