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Term Life Insurance Policy with Riders- Why Is It Crucial?

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Working hard every day and earning for your family is just not your duty but also brings a sense of satisfaction for you. It is an achievement to ensure that your loved ones lead comfortable lives. There can be unseen situations where, with your absence, your family might feel unprotected. It is your responsibility that they are well cared for even if you are not there to support them. One way to ensure that is by purchasing  life insurance coverage. In situations where you are not present, your family will get the monetary support and be financially protected.

 

You must incorporate term insurance in your financial planning as it makes sure that your family is well protected when you are not around. It provides you with many benefits, such as affordable premiums and tax benefits. Furthermore, if you add riders to your term insurance plan, you strengthen it by providing multiple benefits. The following riders will enhance your life insurance cover and ensure protection:

 

1. Critical Illness Rider

While you work and earn daily sustenance for your family, there is always a possibility of an unforeseen situation taking place. It might hamper your daily routine and come in the way of you and your family’s happiness. A critical illness rider to your chosen life insurance policy will empower you to get the best possible treatment. You will not require worrying about the expensive medical cost and the focus of getting treated. This rider is advantageous for you as it provides coverage against cancer, heart attack, paralysis, kidney failure and others. You must select your life insurance cover after considering the feasibility of the addition of this rider as you cannot predict circumstances.

 

In case of facing such troubles, the policyholder gets a lump-sum amount that covers the hospital expenses. After the detection of critical illness, the policy may continue to provide coverage.It is advisable that before associating with this rider, you read all the terms and conditions provided by the insurer.

 

2. Waiver of Premium Rider

The waiver of premium rider is an accelerated benefit that can be added to your life insurance policy(especially term insurance plan.) If the policyholder is unable to pay the future premiums due to disability, this rider is an advantageous option, as the insurer will waive off the premiums in such circumstances. The benefit is that the policy remains active, and all your premium payments are insured until the policy expires. In cases where the rider is not added and the policyholder is disabled and is not able to pay, the policy expires. Further, the policyholder will also not receive any death benefit due to the non-payment of the due premiums.

 

3. Accidental Death Benefit Rider

While it is difficult to fathom the uncertainties of life, you must prepare well for any future unpredicted situations.The accidental death benefit rider insures you against any accident, which makes the policyholder partially or permanently disabled. The inclusion of this rider will enforce the insurer to pay the policyholder for a while following the accident. This rider will strengthen your choice of life insurance cover and can be relied upon as a source of income. The terms and conditions of this rider state that it comes into force only if the disability is caused by accident.

 

Although the riders cost a slightly higher premium, they offer benefits that supersede their initial cost. The rising medical costs can be hard on your savings. With the accidental death benefit rider, you can be assured of monetary safety and focus on getting better. The addition of any of these riders to your choice of life insurance policy will be beneficial in the long run.

 

Policy Riders Are an Effective Additional Advantage

The future cannot be predicted, and during emergencies, different types of life insurance plans and their riders can help protect your loved ones. You must include the riders as add-ons to your plan after complete understanding of its benefits.Since life insurance advantages increase with the addition of riders, it is imperative to compare the varying costs of different riders provided by various insurance companies. 

 

You must assess the importance of the rider for you before you add it to your plan. There are insurance companies like Max Life Insurance that offer you various rider benefits for insurance plans. Furthermore, you can avail of the added advantage of higher tax exemptionup to 1.5 lakh under Section 80C of the Income Tax Act.


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