A life insurance policy is crucial because it protects a person’s family in the event of an untimely death. There are numerous types of life insurance to choose from. Some examples include endowment policies, term life insurance, unit-linked investment plans (ULIPs), whole life insurance, and other types of life insurance. Most life insurance companies in the market offer a variety of rider plans to increase the level of protection provided in addition to the basic protection provided by a life insurance policy.
What is a rider in an insurance policy, you might wonder? A rider is an additional benefit to your basic insurance policy. It’s an optional plan that can help you improve your life insurance coverage. Riders are useful in situations where normal life insurance does not protect you. Some riders give you lifetime benefits by allowing you to withdraw funds from your policy’s death benefit.
You can choose from a variety of life insurance riders to supplement your normal insurance plan. The following is a list of the most popular types of life insurance riders:
Income Support
This rider pays a fixed monthly income for a set period of time following the death or permanent total incapacity of the primary insured. This is an optional insurance that protects a family’s finances against loss of income due to the insured’s death or disability.
Unintentional Death
An accidental death rider increases your death benefit if you die in an accident. In the event of an accident, the additional benefit is typically equal to the face value of the original policy, doubling the total payout to your beneficiaries.
Premium Exemption
The life insurance policy will be terminated if the premium amount is not paid within the grace period offered by the company. If the insured loses income owing to a handicap, it may be extremely difficult to preserve the present coverage. This rider will keep the policy alive by waiving any future premiums if the insured is unable to pay the premium due to a disability.
Disability Insurance
A disability rider is a valuable benefit if the insured suffers a total, partial, or permanent disability due to an accident, stroke, or other cause. This rider ensures that the insured and their family will receive a lump sum payment or an income benefit in the case of disability.
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