Income Benefit Rider
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Income Benefit Rider
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Riders in Life Insurance: Overview

Riders refer to the extra protection or additional benefits that you can add up to your basic life insurance plans by paying an extra amount.

There are several riders available with life insurance such as Accidental Death Benefit Rider, Accelerated Death Benefit rider, Total Permanent Disability rider, Critical Illness Rider, Income Benefit Rider and Terminal Illness Rider. In this article, we will learn about Income Benefit Rider.

What is an Income Benefit Rider?

As per the word income, the income benefit rider provides monthly income to the policyholder under the following circumstances:

  • Permanent Disability
  • Critical Illness

If the policyholder falls under these circumstances and is unable to earn for more than six months of tenure. The income Benefit rider offers the regular income until the policy term, according to the plan which supports the customer to cover living expenses and maintain their current lifestyle.

Who Should Buy an Income Benefit Rider?

The following is a list of people who should opt for an income benefit rider:

  • Primary bread earner of the family.
  • A person who travels regularly.
  • A person who is doing high-risk profile jobs such as mines, construction sites etc.

Eligibility Criteria for Income Benefit Rider

The Eligibility criteria for income benefit rider are as follows:

Terms Eligibility
Age Limit 18-65 years
Max Maturity age 70 years
Sum assured Same as the base Plan
Coverage Same as the base plan
Premium Paying features Same as the base plan

Benefits of Income Benefit Rider

Following is the list of benefits of income benefits riders:

  • Financial Security Income benefit rider provides financial freedom, by providing a reliable source of income in the event of disability and critical illness, ensuring financial security in tough times.
  • Maintaining Lifestyle Through income benefit rider policyholders can sustain their current lifestyle without compromising basic needs by providing a monthly income as per the plan.
  • Flexibility Income Benefits rider provides flexibility to choose payout options such as monthly, annual or lump sum as per the financial planning of the customers.
  • Provide Disability Coverage The basic life insurance plans do not include disability coverage in their terms. Adding an income benefits rider with your plan provides crucial protection against the loss of income due to any type of disability.

Exclusions of Income Benefits Rider

Following is the list of exclusions of the income benefit rider:

Suicide

Self-inflated injuries

Pre-existing disease

Use of alcohol, drugs, etc

Injuries due to war, terrorism, riots etc

Participating in any adventure sports: underwater, sky-diving etc.

Conclusion

The income benefit rider provides an extra layer of protection to your basic life insurance plan. It gives you financial freedom in events like disability, critical by paying a regular monthly income to maintain your current lifestyle without any hassle. Adding an income benefit rider to your life insurance plan is like adding an extra safety net for your financial planning for a more secure future.

Income Benefit Rider : FAQ's

1. Can I Purchase an Income Benefit rider between a policy term?

No, the rider could only be opted at the time of purchase of the policy or the anniversary of the policy.

2. Can I get a tax exemption for income Benefit rider?

Yes, you can get a tax exemption for opting for an income benefit rider under section 80c of the Income Tax 1961.

3. What is the minimum entry age for opting for an income benefit rider?

The minimum entry age for opting for income benefits rider is 18 years of age.

4. What are the conditions under which policyholders can opt for income benefit rider?

The Policyholder can opt income benefit rider with the regular policy term, only under

  • Permanent disability.
  • Critical illness

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What Our Customers Have to Say

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Sanjeev

Hyderabad

May 20, 2024

SUD Life term plan truly stands out my expectations as I got SUD Life term plan along with additional riders at very affordable premiums.

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Sumit

Coimbatore

May 20, 2024

I am impresses with the hassle free and quick claim settlement process of SUD Life. Thanks to PolicyX who guided me to get my claim settled.

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Barkha

Delhi

May 20, 2024

Bought SUD Life Family Income Benefit Rider plan to secure the future of my plan financially even in my absence.

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Geetanjali

Kolkata

May 20, 2024

I was looking for a term plan to secure the future of my family. So I contacted PolicyX and one of their representatives Mr. Vaibhav helped me choose SUD Life term plan.

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Armaan khan

Agra

May 17, 2024

I recently purchased a Pramerica term insurance policy from Policyx.com. The customer service team was very helpful in answering all my queries and guiding me through the application process. I...

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Rahul Yadav

Indore

May 17, 2024

PolicyX’s dedicated support made renewing my Bandhan Life Insurance policy easy. I’m absolutely delighted with the service offered by PolicyX Insurance Advisor.

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Priyanshu Sharma

Delhi

May 17, 2024

I bought a Bandhan Life Insurance through PolicyX, and I must say the level of communication and assistance I have received has been truly impressive.

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Yash Tomar

Bhopal

May 17, 2024

After getting advice from the PolicyX experts, I chose a Bandhan Life Insurance term plan. Thank you, PolicyX, for helping me buy a term plan at such a low premium.

Varun Saxena

Written By: Varun Saxena

Varun is a passionate content writer with over three years of experience in the insurance domain. An avid learner, he stays ahead of the industry's trends ensuring his writing remains fresh and includes the latest insurance shifts. Through his work, Varun strives to engage with targeted insurance readers.