Term life insurance is essential for every earning individual, as it ensures the financial security of their family in the event of an untimely death. To further enhance your policy, insurance add-ons or riders allow you to customize your coverage according to your specific needs. These add-ons help you tailor your policy to meet your financial goals, providing enhanced financial protection that safeguards your unique requirements.
You can get higher coverage during times of requirement by paying a decent amount of premium. In this blog, we will discuss what add-ons you must add to your life insurance policy.
1. Critical Illness Add-on
Critical illnesses such as heart disease, kidney issues, paralysis, cancer, and others can strike at any time. Often, they are not diagnosed in their early stages, posing a serious threat to one’s life. Nowadays, these illnesses have become increasingly common, and their treatment can be financially burdensome. However, you can mitigate these expenses by opting for a “critical illness add-on” to your insurance policy.
This rider ensures that you receive a lump sum amount upon diagnosis of a covered critical illness. This amount can be used for treatment, recovery, and even for compensating income loss during the illness period. This add-on not only provides financial support but also peace of mind during challenging times.
2. Waiver of Premium
Sometimes, unexpected events can adversely affect a family's financial condition, making it difficult to pay further premiums. The "waiver of premium add-on" safeguards you in such situations by waiving the remaining premiums in cases of disability or handicapped circumstances. This type of add-on is especially suitable for people living an adventurous life.
For instance, if an unfortunate event leads to total and permanent disability, this rider ensures that your life insurance policy remains active without the burden of paying future premiums. This ensures continuous coverage and financial protection for your family.
3. Accidental Death Benefit
Each individual works to support their family, but what will happen if something happens to the breadwinner? It can disrupt the entire family's stability. Therefore, it's important to ensure the family remains financially sufficient even in the breadwinner’s absence.
With the Accidental Death add-on, an additional sum assured is provided if the policyholder's death results from an accident. This add-on is particularly beneficial for those working in high-risk environments. If the insured person dies within three months of an unforeseen accident, the nominees receive the sum assured.
This add-on offers an extra layer of financial security by providing a higher payout in case of accidental death, ensuring that your family can maintain their lifestyle and meet future financial needs.
4. Accidental Total and Permanent Disability Rider
This add-on to your life insurance plan activates if you lose both legs, both arms, both eyes or one leg and one arm. Depending on your insurer and plan, it may offer a waiver of premium or a lump sum payout, providing financial support when your income is compromised. This rider can be an independent add-on or combined with income or Critical Illness Riders.
The financial impact of a total and permanent disability can be devastating. This rider provides a safety net by ensuring that you receive financial assistance, which can be used for medical treatments, rehabilitation, and daily living expenses. It helps maintain financial stability during challenging times.
5. Life Stage Benefit
It's recommended to calculate your ideal life insurance coverage using a free calculator and verify it with an expert advisor. However, for unforeseen expenses during major life events like weddings, childbirth, adoption, or home loans, a Life Stage Benefit Rider can help. This rider increases your coverage up to a capped limit during these events, aiding in claim settlement and life insurance claims.
This add-on allows you to enhance your coverage without the need for a new policy, making it easier to manage increased financial responsibilities during significant life events. It provides flexibility and ensures that your insurance coverage evolves with your changing life circumstances.
Conclusion
Although there are several more add-ons for your life insurance policy, such as return on premium and increasing cover options, the above-mentioned riders are must-haves. It's important to note that these add-ons will result in an increase in the premium price, so you should carefully consider if you need them.
If you are experiencing issues related to life insurance claims, such as claim settlement, claim rejection, delay in the claim process, or if you have a complaint about your insurance company, it is advisable to contact an expert for assistance. Consulting with an expert can help you overcome these challenges and ensure that you receive the benefits you are entitled to.
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