Rider in Insurance Policy: The insurance policy comes with an optional cover or rider, which further enhances the insurance cover. Life and general insurance policies have the facility of rider benefit. For this, they can be availed by paying extra along with the premium.
New Delhi. All life and health insurance policies come with an optional cover or rider, which adds to the insurance cover. Policy coverage can be increased by adding a Critical Illness Rider and Accidental Death and Disability Benefit Rider in a term or life insurance policy. Since in term insurance the increased amount is paid in lump sum on the death of the policyholder but no benefit is available in case of illness or accident during the policy term. In such a situation, if the rider benefit is included in your insurance policy, then you can get relief from it.
Life and general insurance policies have the facility of rider benefit. For this, they can be availed by paying extra along with the premium.
What are term life insurance riders? Riders are extremely beneficial as an added benefit with a term insurance plan. These include riders like critical illness, premium waiver, accidental death, permanent and partial disability and income benefit. At the same time, income benefit rider is very popular with term policies nowadays. Under this rider, the nominee gets a monthly income for 10-15 years after the death of the insured.
At the same time, about 70 percent of term life policies are sold with a rider. Their popularity with term plans has increased a lot in the last four years.
What are the benefits of a rider in an insurance policy? The rider in the insurance plan allows the consumer to customize the product to meet his convenience and needs. Riders are most commonly used in motor insurance. The most popular of these is the Zero Depreciation Rider. In this, the depreciation cost of the parts of the vehicle is not included in the case of repairs.
Apart from this, other popular motor insurance riders are Return to Invoice, Key Protect, Tire Protect and Engine Protect. Under the return to invoice rider, the invoice value of the vehicle is paid in case of any loss.
