Riders – Insurance Enhancement Tool

Riders – Insurance Enhancement Tool:

Riders are the optional benefits and features which can be added to main Insurance policy to enrich the plan and to make more suitable and beneficial to fulfill your requirements through the Insurance Plan. Riders offer additional covers to insured person with his/her main policy for nominal charges along with the Premium.

Riders can be used to convert your main policy to multi-risk cover policy and in single policy Insured can have benefits of group of coverage at a single point by a single Insurer.

The life of Riders is equal to the Policy Payment Term, for example if insured policy’s Payment Premium Term (PPT) is 15 years then the life/coverage of Riders will be applied for 15 years only till the date you are paying Premium of the Policy. There after your policy will be continued but benefits of the Riders will be removed from the main Policy.

Riders can be opted only at the time of Policy initiation/purchase time, there after Riders can’t be added/removed to/from the main policy. So whenever planing for the insurance plan, check your need and choose required Rider with your new Policy, as after purchase you can’t add Rider to that.

There are many Riders available with the insurer as per the requirements of Plan and Approvals from IRDA, without IRDA approval, no insurer can offer any Rider along with the policy.

Riders on the offer by Insurers;

  1. WoP Rider – Waiver of Premiums Rider, mainly used to waive off the premium in case of mishap of insured person.
  2. WoP Plus Rider – Waiver of Premiums Rider used to waive off the premium in case of diagnose of the critical illness as well the death of insured.
  3. ADD Rider – Accidental Death and Dismemberment Rider safeguard your family’s financial in case of accidental mishap, and provide additional coverage in case of death or dismemberment due to of an accident.
  4. Partner Care Rider – This rider safeguard your partner upon your death during the Policy Payment Term.
  5. Term Rider – Term Rider provide enhance the coverage or sum-assured amount, in case of insured death during the Payment Policy Term.

There is limitation for Riders Coverage and Terms, Riders mainly applicable till the Policy Payment Term or till age 60  whichever come first, of the insured as per T&C of the main policy, and there is capping in some Riders regarding the Sum-assured  as in ADD Rider, insured can take sum-assured till Rs 50 Lakh and in Term-Rider he can opt upto Rs 15 Lakh maximum with some insurers but it can’t me more then the sum-assured of insured main policy at all. For Example Mr A has main policy with sum-assured of Rs 25 Lakh then he can’t avail rider with higher sum-assured, his limit will be Rs 25 Lakh per rider or max by individual limit of Rider but not more then Rs 25 Lakh.

Amit Saxena

Financial & Insurance Consultant
MaxLife Insurance Co Ltd & MaxBupa Health Insurance

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