Insurance Riders are like add on options which can be availed by paying an extra premium. These riders provide extra coverage and can be added to linked and non linked life insurance policy.
Insurance riders should be added to the policy at the time of taking the policy. Some insurer may allow the riders to be added on later date also.
Here are different types of riders which you need to be aware of
Accidental Death Rider/ permanent disability Rider
This type of insurance riders provide an additional benefit over and above the normal policy could cover. In case of permanent disability due to accident, the rider may provide with benefits such as payments of benefits periodically, or waiver of future premiums.
Critical Illness cover
Critical Illness cover offers benefits of lump sum amount or periodic payments if you are diagnosed with an illness which specified in the policy. Heart Attack, Cancer, Stroke, Coronary artery by-pass graft surgery (CABG), Kidney failure and Paralysis are some of the illness generally covered under Critical Illness.
Waiver of premium riders
This option provides for waiver for future premiums in an event of occurrence of an insured contingency such s death, disability etc. This facilitates continuity of coverage/benefits without having any financial strain.
Similarly, in case of child plans, these riders provide the benefit of waiver of future premiums due to ultimate death of parent who is a policy holder.
Spouse Insurance Riders
This rider will cover for the spouse without having to purchase separately.
This type of rider provides payment of additional benefit on death over and above what the policy covers.