Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Invest

Insurance and Investment in one plan.

Kotak e-Term

Protect your family's financial future.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals.

Kotak T.U.L.I.P

A plan that works like a term plan, and Earns like ULIP Plan.

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family.

Kotak Assured Pension

A plan that offers immediate or deferred stream of income

Kotak Lifetime Income Plan

Retirement years are the golden years of life.

Kotak Guaranteed Savings Plan

A plan that offers long term savings and life cover.

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

How to Customize Your Life Insurance Policy with Riders

Having a life insurance riders will help you customize your life cover. Click here to know the types of riders and its benefits.

  • 4,752 Views | Updated on: Jan 15, 2024

A life insurance plan is designed as an income replacement facility for families that suffer the untimely death of the bread earner. There are many life policies available in the market, most of which offer huge covers and additional bonuses. However, sometimes a life cover is not enough as it pays only in case of death. For other unfortunate occurrences like accidental disability or critical illnesses, you need something extra. This is when life insurance riders come in the picture.

Riders are optional covers that you can add to your life policy. You can purchase them for an extra premium to enhance your existing policy.

Types of riders in Insurance

You have the flexibility to choose from various forms of riders. The availability and price of riders depend on your insurance plan. Here are some important riders to consider:

1. Accidental death

The accidental death rider allows the nominees of the policyholder to receive an additional benefit with the main life policy cover. For example, if you have a term plan cover of INR 20 lakh and you have an accidental death term insurance rider worth INR 5 lakh, the total benefit becomes INR 25 lakh.

2. Permanent disability

In some cases,an accident may cause permanent disability. This often results in loss of income. With this rider, the policyholder receives the sum assured over a certain period.

3. Critical illness

Out of all the types of riders, a critical illness rider is one of the most important ones to have. It pays you a lump sum in case you are diagnosed with any serious disease included in your policy. You can use the money to cover hospital expenses and loss of income.

Conditions of insurance policy for Riders

When buying a rider, keep these important points in your mind:

  • The Insurance Regulatory and Development Authority of India (IRDAI) mandates that the total premium you pay for your riders cannot be more than 30% of your basic life policy
  • The sum assured and the tenure of the riders cannot be more than your main life insurance policy
  • The benefits of the riders discontinue when the policyholder reaches the age of 65 or when the base policy matures

Life Insurance Tax Benefits for riders:

The premium paid towards any health-care related rider is eligible for a tax benefit under Section 80D of the Income Tax Act, 1961. Section 80C of the Act allows tax benefits for other riders such as accident benefit rider and disability benefit rider.

Watch outs

If you want to add riders to your life insurance policy, you need to watch out for certain things. Some insurers only you to buy riders when you are buying the base policy while insurers let you buy riders when you n renew the policy. You must buy the rider accordingly. Also, find out if your insurer allows you to buy all the riders that you require.

Riders can surely enhance your existing cover, but be sure to only add the ones that you need.

- A Consumer Education Initiative series by Kotak Life

Amit Raje
Written By :
Amit Raje

Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.

Amit Raje
Reviewed By :
Prasad Pimple

Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

Kotak e-Term

Download Brochure

Features

  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435

T&C