Best Life Insurance Plans From Top Insurers

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Best Life Insurance Plans From Top Insurers

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Choosing a perfect life insurance plan is one of the crucial decisions one makes in his life. After all, nobody wants to regret a wrong decision. Thus, it is advised that one must take time and expert's advice before buying a life insurance plan.

It is important to opt for the right life coverage. And it is equally important to know about the optional features - Riders. Riders give immense support to life insurance. A life insurance provides financial security to the family and riders expands the risk coverage of the base policy.  If we talk about the literal meaning, a life insurance policy provides financial security to the family and riders expands the risk coverage of the base policy.

Basically, riders are optional features of life insurance policies that enhance the base plan coverage at an affordable price. Additionally, the right choice of life insurance riders would help your family at the time of claim.

What Does Life Insurance Mean?

As we know, life insurance provides life coverage, which provides complete protection against the risk of death and major health issues.

The Objective of a Life Insurance Policy:

To provide financial security in case the bread earner of a family passes away is the main objective of a life insurance policy. It basically helps the dependents of a bread earner of a family in a financially stable situation. It acts as risk coverage against the untimely death of the bread earner. It is quite obvious that without a life insurance policy, in such an unfortunate incident, the bread earner’s family could be in financial crisis - with no cash flow.

Meanwhile, if someone has a life insurance plan, in such eventualities, the insurance company pays the life coverage to the nominee or the beneficiary. This helps the insured’s family to become financially stable without compromising on their lifestyle. However, for more convenience and options, there are types of life insurance policies that provide an opportunity of savings, investment, retirement planning and much more.

Various Purposes for Which Life Coverage Could be Used:

  • Household monthly expenses
  • For kid’s education
  • To pay off any house loan or debts
  • To build funds for retirement
  • To build a corpus for child’s marriage

Life Insurance Riders - How It Works?

Life insurance riders are the paid features that one can add to expand the scope of his/her life insurance plan’s base coverage. Any person can be left out of work if any unfortunate incident happens to them and (s)he got any permanent disability, suffering or critical illness. In such cases, a vanilla life insurance policy plan does not cover the breadwinner’s loss of income due to a disability or critical illness and also do not cover up the household expenses.  We have to agree that these days, it is quite common that people at 30 get a severe stroke, which forces them to leave work because of stress and hectic schedule. Also, they might suffer a critical illness. The matter of fact is that the cost for the treatment of any critical illness, such as heart attack, cancer and alike shoots the sky; which may leave the family in debt for years or even for a lifetime. For instance, the cost of an anti-cancer drug may cost anywhere between Rs 72,000 to Rs 76,000 per dose.

How a Life Insurance Rider Rescue in Such Cases: The policyholder can cover these unforeseen eventualities with rider sum assured benefits. By adding riders to life insurance, one can expand the policy's coverage at very low premiums.

You Can Also Check:- What is an Endowment Life Insurance Plan

Top Life Insurance Riders

  1. Accidental Death Benefit Rider

The insurance company will pay the sum assured plus the rider benefit to the nominee, in case of accidental death of the life insured. An accident may not directly lead to on the spot death in many incidents. Therefore most of the companies include duration after the occurrence of the accident to extend the given cover. For instance, the nominee still gets the sum assured money if the insured dies within 180 days of the occurrence of an accident. It is important to see such details before choosing riders and also compare from different insurers.

Who Can Opt For an Accidental Death Benefit Rider:

This rider can be taken by everyone as this cannot be predicted before the incident. However, this is a must have rider:

  • For the ones who commutes and travels through vehicles like car, bike, commercial vehicles, public transport, train, etc.
  • For the one who frequently travels through flights for business, work and travel purpose
  • If the job involves physical work in the manufacturing industry or on-site civil work
  1. Accidental Total and Permanent Disability Rider

The life insured suffers a total permanent disability - losing legs and arms, consequently, forcing one to leave work if due to the accident this rider will help with the cash flow. During such an unfortunate incident, the insurance company gives the rider benefit to the life insured. However, the rider benefit varies from insurer to insurer and also on the sum assured of the base plan. Some companies pay a percentage of the rider benefit as a regular monthly income for five to ten years. If the life insured dies during the tenure after suffering the disability, the nominee would get the outstanding sum assured or as the rider condition dictates. Generally, this rider is attached with Accidental Death Benefit Rider.

Who can opt an Accidental Total and Permanent Disability Rider:

This rider can be taken by everyone; however, this cannot be predicted before the incident. It is a must have rider:

  • For the ones who commutes and travels through vehicles like car, bike, commercial vehicles, public transport, train, etc.
  • For the one who frequently travels through flights for business, work and travel purpose
  • If the job involves physical work in the manufacturing industry or on-site civil work
  1. Critical Illness Rider

The critical illness rider covers major critical illnesses like heart attack, cancer, stroke, kidney failure, paralysis, coma, etc. It is important to check the list of illnesses covered as it varies for different companies.

Why one Should opt the Critical Illness Rider:

One should opt for this rider because the insurance company pays the rider benefit once the critical illness is diagnosed. Any of the listed Critical Illnesses may not lead to death, immediately but, that could leave the insured out of work and break in the income flow. The life insured is compensated immediately, with the help of this rider. Therefore, money can be used for monthly expenses and also for medical treatments. Meanwhile, some insurance companies pay 100 percent of the sum assured on the diagnosis. But, it is paid if the life insured survives the waiting period of 30 days after the date of diagnosis.

As unexpected illnesses and cannot be predicted with a medical history, this rider can be taken by everyone. These are few people who must have a rider:

  • For top-level executives with too much work stress
  • For someone who smokes frequently
  • For someone, with an unhealthy lifestyle
  1. Waiver of Premium

Under a vanilla life insurance plan, in case any unfortunate incident happens, if the policyholder of a life insurance suffers any disability due to which (s)he is unable to pay the future premiums, the policy terminates.  In such cases, having the ‘waiver of premiums’ rider will be of the most benefit to the policyholder. Here, all your future premiums will be waived off, and the policy will continue to be in existence.

However, it may also be the case if the proposer is different than the insured. If the future premiums cannot be paid because of the accidental disability or death of the proposer, then the premiums for the base policy and riders will be exempted, but your policy will continue.

Who Should opt for a Waiver of Premium Rider:

In general, this rider may be available along with Accidental Total and Permanent Disability Rider and Critical Illness. And in case it is not already available, one has to opt for it separately. Though this cannot be predicted before the incident, this rider can be taken by everyone. Waiver of premium rider is a must for:

  • For the ones who commutes and travels through vehicles like car, bike, commercial vehicles, public transport, train, etc.
  • For the one who frequently travels through flights for business, work and travel purpose
  • If the job involves physical work in the manufacturing industry or on-site civil work
  1. Accelerated Death Benefit Rider

Unfortunately, if a life insured is diagnosed with a terminal illness, such as Cancer, Leukemia. AIDS, HIV, etc. diseases that shorten the lifespan, this rider acts as a savior in such cases. The insured can use this rider for treatment in this situation. This one-time lump sum payout on diagnosis can be set at the time of purchase. Additionally, the rest of the money is paid to the family after the passing away of the insured so that the family stays financially secured.

Who Should opt for an Accelerated Death Benefit Rider:

  • A serious self-analysis of the environment where one is living and the kind of lifestyle is highly recommended. Then, one may decide to opt or not. However, these are total, unpredictable.
  1. Term Rider

Term Rider offers a lump sum or monthly income to the nominee in case of the assured demise. The rider benefit can be equal to the base plan coverage or a predetermined value defined in the life insurance policy.

Who Should opt for a Term Rider:

  • The one who wishes to leave behind an enormous coverage amount.
  1. Hospital Cash Rider

In the case of hospitalization, a fixed benefit per day of hospitalization is paid. However, the benefit amount, minimum and maximum sum assured, terms and condition differs from insurer to insurer.

Who should opt for a Hospital Cash Rider:

  • The one who wishes to cover hospital expenses in case of eventualities.
  1. Surgical Care Rider

In case the insured is undergoing a surgery in India which can't be avoided, a lump sum benefit will be paid under Surgical Care Rider. Meanwhile, the benefit may differ from one type of surgery to others. The coverage varies for minor and major surgery cases.

Who Should opt for a Surgical Care Rider:

  • The one who wishes to cover surgical expenses in case of eventualities.

Tax Benefits for Life Insurance Riders

A policyholder can avail tax benefits for life insurance riders. The policy covers:

  • All the premiums paid towards the Critical Illness Benefit Rider or any other health-related rider is tax exempted under Sec 80(d) of the Income Tax Act, 1961.
  • All the premiums paid towards the accidental death benefit rider, accidental total and permanent disability benefit rider are tax-exempt under Sec 80(c) of the Income Tax Act, 1961.

Does a Policyholder Really Need Life Insurance Riders

This is the most common as well as a confusing question to a life insurance policy. To get the right answer one must the common and different features of a fast working charger and life insurance riders.

To understand it better, let’s say someone has to mail an urgent report to your office and his/her laptop’s battery is about to die. So you think a regular charger be of any help? The answer is maybe yes unless and until (s)he doesn’t have any other option, except to wait for your laptop to get charged. Or have a spare battery. But, what if someone hands over a charger that works really faster than usual, at that very moment? It would be a big sigh of relief. One can use a regular charger. But at that very moment, what (s)he needed was a fast working charger.

The same helpful is the life insurance riders. Like a fast working charger, riders are optional. A fast working charger charges the battery faster by increasing the charging power; the same way riders increase the power of your life insurance plan. One can simply buy a vanilla life insurance without riders.

God forbid, but at times if someone suffers permanent disability or critical illness, how would his/her family tackle that situation, monthly expenses, child’s education, marriage, home loans and so forth. In similar cases, where one needs complete protection for unforeseen eventualities, riders are the one to count on.

Things to Remember About Life Insurance Riders

Here are a few points on life insurance riders, PolicyX has listed down for its readers:

  • In-built riders: With in-built riders at no cost, some insurers offer plans for their customers. It is advised to check-out such in-built featured plans at the time of comparing life insurance plans.
  • Buying riders: The situations like the time of inception of the policy or on the policy anniversary, most insurance companies offer to buy of riders. However, this also varies from insurer to insurer. So it is necessary to plan strategically before planning a life insurance plan and riders, in case you are planning to buy. Because once the policy is issued, you may not be allowed to opt for riders.
  • Canceling riders: The insured can cancel these optional featured riders any time during your policy tenure without worrying about its cancellation policy.
  • Rider premium payment: The rider premium payments are the same as policy premium term and mode.

Why Life Insurance Riders Are Most Important

If we talk about the reasons for which opting a life insurance rider is important and beneficial as well, they are numerous. If someone has dependents counting on him/her for their livelihood and other life activities, it goes without saying that (s)he need life insurance with riders. (S)he must choose the right riders as per his/her requirements and conditions.

By all means, we can conclude that if a life insurance policy is for those who are concerned for their dependents and want to be prepared for any kind of unfortunate incident, then a life insurance rider is the basic support system to the policy in a bit lesser crucial situations.  Although the opting riders are a matter of choice, the power with which it comes is what matters most. We hope this perfect guide to choosing the life insurance riders will help you to decide the right type of riders and secure your family. We advise our readers to go through your insurer’s website, the add-ons of the policy, consult with the experts of the field and choose the best suitable life insurance policy along with a rider for your loved ones.

Read This:- 18 Life Insurance Terminologies a Policyholder Should Know

Naval Goel is the founder of PolicyX.com. He is an Associate Member of the Indian Institute of Insurance`, Pune. He has been authorized by IRDA to act as a Principal Officer of PolicyX.com Insurance Web Aggregator.
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