Here’s How You Can Get Enhanced Protection Under Insurance Plan

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Safety and security have been on everyone’s mind lately. As important as it is to ensure physical health during the pandemic, you may not have paid enough attention to your financial health. Ensuring that your finances are in good shape is crucial, especially during uncertain times.

Life insurance is one of the tools that can be used to your advantage in this situation. They are essentially an emergency backup for situations that have significant financial consequences, such as your untimely demise. Losing the family’s breadwinner can be devastating for the family’s financial well-being.

The harsh reality is that several threats surround our lives and can be the reason for financial distress. So, the question is whether a standard life insurance plan is enough to take care of your needs today?

As a solution to this, most life insurance providers offer riders their plans. These are add-ons to the base policy that can enhance the coverage scope of your life insurance substantially. When you buy life insurance, you have the option of adding the relevant riders to your plans.

So, what is life insurance riders? In simple terms, riders are an add-on to your standard term insurance, which gives you a chance to create a more comprehensive financial plan against unforeseeable circumstances.

Let’s take a closer look at some of the common riders available with life insurance:


1. Critical Illness Rider

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Life-threatening illnesses such as cancer, renal failure, heart attacks, major surgeries, paralysis can be tremendously expensive to treat. A critical illness rider can prevent the massive burden on your savings in case of such a medical emergency.

You can include the critical illness rider when you buy life insurance at the cost of an additional premium. The list of diseases covered under the rider may vary from insurer to insurer.

Therefore, make sure to read the policy document carefully when you buy life insurance. Upon diagnosis of a listed critical illness, you will be entitled to a lump sum or periodic payments, as per the policy terms.


2. Waiver Of Premium Rider

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In case you end are diagnosed with a critical illness or suffer disability due to an accident, the life insurance rider can offer financial support for the medical expenses. But, in some cases, it may also mean that your income source is affected. If the policyholder is unable to continue their job, they may not be able to pay further premiums for the life insurance plan.

But does it mean your life insurance should be discontinued? The waiver of premium rider makes sure this is not the last resort. You can include the rider when you buy life insurance to avoid policy lapse in such a scenario.

If you are unable to continue premium payments due to accidental disability or income loss, the future premiums can be waived off. This does not affect the cover of life insurance, and you will remain financially protected.


3. Accidental Death Rider

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Life is full of unexpected events, and it can leave you in sudden financial distress. If we talk about road accidents alone, there were 4,37,396 cases in 2019, with an increasing fatality year. In such a situation, it is crucial to prepare for emergencies to reduce the financial impact on you and your loved ones.

With a standard insurance plan, you get a basic death benefit that may not be cover all possibilities of the future. In case of the policyholder’s unfortunate demise due to an accident, the dependents are provided with an additional benefit with an accidental death rider.

It serves as an extra layer of financial security for emergencies. Since accidents can suddenly leave a family in financial trouble, they can be a valuable addition to your life insurance policy.


4. Permanent Or Partial Disability Rider

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An accidental injury can lead to permanent or partial disability in a person. This can lead to the loss of the income source and substantial medical expenses. For protection against such a situation, you can opt for a permanent or partial disability rider when you buy life insurance.

It covers the risk against unforeseeable situations like this and replaces the income source to stabilize your financial situation. You can receive the amount in installments, in specified proportions of the sum assured or the entire sum, depending on the policy terms, which may vary with different life insurance plans.


5. The Need for Enhanced Protection 

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One of the main concerns in life is financial security and independence. We use investment and savings tools to optimize income and be prepared against risks and obstacles. But, it is crucial to be aware of all the available options that can support you effectively. Life insurance in itself is a tool that can build wealth and create a shield of security.

The riders can act as a valuable component when added to the life insurance to prepare you against several risks that are out of your control. It allows you to ensure your family lives a comfortable life even when things don’t go according to plan. Understanding what is life insurance value and its role in such situations can considerably impact your future. So, remember to make the best use of your hard-earned money by creating a comprehensive financial plan.

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Praneet Samaiya
the authorPraneet Samaiya
Entrepreneur, Movie Critic, Film Trade Analyst, Cricket Analyst, Content Creator