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Features
Ref. No. KLI/22-23/E-BB/492
Riders are optional add-ons to an insurance policy that provide additional coverage or benefits, allowing customization to better meet specific needs.
A life insurance policy is designed to provide financial security for your loved ones. It comes with multiple facilities, such as death and maturity benefits. However, you can enhance the coverage even further with insurance riders.
The riders are additional benefits that you can use to enhance your existing life cover. The riders are also known as add-ons. To avail of the benefits, you need to pay an additional premium, however, the extra price proves beneficial in the form of financial security.
Insurance riders are like custom toppings on your pizza—they allow you to tailor your policy to suit your needs and lifestyle. Whether you’re looking for additional coverage or extra financial protection, these riders can be the perfect addition to your insurance policy. Here are some of the most popular types of insurance riders available:
The Critical Illness Rider can be a lifesaver—literally. If you’re diagnosed with a serious illness like cancer, heart attack, or stroke, this rider provides a lump sum payout to help cover medical expenses, treatment costs, or even everyday expenses if you’re unable to work. The best part? You can use the money however you see fit, whether that’s paying off medical bills, covering your mortgage, or seeking alternative treatments.
Having a critical illness rider can provide peace of mind, knowing you have financial support during a challenging time. It’s an excellent choice for anyone looking to safeguard their finances against the unexpected costs of a major illness.
The Waiver of Premium Rider is like a safety net for your insurance policy. If you become totally disabled and cannot work, this rider waives your premium payments while keeping your policy active. Essentially, it ensures that your coverage remains intact even when facing financial difficulties due to a disability.
This rider is particularly beneficial for those who want to ensure their life insurance policy doesn’t lapse in the event of a long-term disability. It’s a great way to maintain your coverage without the stress of having to make premium payments during tough times.
The Accidental Death Rider offers an additional death benefit to your beneficiaries if you pass away due to an accident. If the unthinkable happens, your loved ones will receive an extra payout on top of the base policy amount.
This rider is especially useful for individuals who work in high-risk jobs or engage in activities with a higher chance of accidental death. It provides an added layer of financial security for your family, helping them manage expenses in your absence.
The Income Benefit Rider ensures a steady income stream for your beneficiaries in case of your untimely death. Instead of a lump sum payout, this rider allows for regular payments over a specified period, helping your loved ones manage their financial needs in a more structured manner.
This can be particularly beneficial for families who rely heavily on a steady income for everyday expenses, ensuring they have financial stability during difficult times. It’s a way to support your family’s ongoing financial needs without overwhelming them with a single large payout.
The Accidental Disability Rider offers financial protection if you become disabled due to an accident. This rider typically provides a regular income or a lump sum payout to help cover medical, rehabilitation, and daily living expenses while you cannot work.
This rider can be a crucial addition to your policy for individuals in high-risk professions or those who lead an active lifestyle. It helps cover the gaps left by standard health insurance and ensures you have financial support during your recovery period.
The riders of the life insurance policy come with various benefits. Here are the ones that guarantee overall security for you and your family:
The most important aspect of being a rider is that it enhances your life coverage. With riders, the cover becomes more comprehensive and offers complete security. For example, if you buy a critical illness cover, the insurer can offer a monetary benefit to cover all the hospitalization and household expenses during your treatment.
Buying riders is quite economical compared to purchasing separate policies for additional security. As the riders come as add-ons to your existing policy, you must pay an additional but affordable price to enjoy the benefits. You also have the flexibility to buy riders as per your requirements.
Certain riders come with tax benefits, too. Hence, you can save more with riders. When purchasing your life insurance policy, ask your insurer about the available riders. This way, you can add them to the policy during purchase and receive complete protection.
Now that we know what riders are and why they’re beneficial let’s look at the steps involved in purchasing them.
Start by evaluating what you need. Are you concerned about potential disabilities affecting your income? Do you want to ensure your family gets extra support if something happens to you unexpectedly? Understanding your personal and family needs is crucial in deciding which riders are worth considering.
Once you have a sense of what you might need, talk to your insurance agent or broker. They can provide insights into which riders are available and suitable for your specific policy. Insurance agents are like your navigators in the vast sea of insurance options, so make sure to use their expertise.
Riders come at an additional cost, so it’s important to weigh the benefits against the expense. Ask your agent to break down the cost of each rider and the potential benefits they offer. This will help you decide which riders provide the best value for your situation.
Before you make any decisions, make sure you thoroughly read the policy documents. Understand the terms and conditions of each rider, including any exclusions or limitations. You don’t want to be caught off guard later on.
Once you’ve made your decision, you can go ahead and add the riders to your policy. Most insurance companies allow you to customize your coverage to include the riders that make the most sense for you. Make sure to double-check everything before finalizing the purchase.
Not all insurance policies are eligible for riders, and the availability of riders can vary depending on the insurance company, the type of policy, and the specific terms of the insurance plan. Here’s a closer look at how riders work with different types of insurance policies:
Riders are additional benefits or coverage options that can be added to an insurance policy to customize it according to your needs. They offer a way to enhance your basic insurance plan, allowing you to address specific risks and financial concerns not covered by the standard policy. Here’s an in-depth look at the important points to know about riders in insurance policies
Riders add to your insurance premium. Make sure to evaluate whether the added cost fits your budget and if the benefits justify the expense.
Each rider has specific terms and conditions. Read the fine print to understand what is covered and what isn’t.
Some riders might have eligibility criteria based on age, health status, or other factors. Check if you qualify before adding them to your policy.
Your needs change over time. Regularly review your riders to ensure they align with your current situation and goals.
1
Adding a rider allows you to customize your insurance policy to suit your specific needs better and provide extra protection for certain risks or conditions. It enhances your coverage and ensures your policy is tailored to your situation.
2
Yes, riders come with an additional cost. They increase your insurance premium, but depending on your needs, they often provide benefits that can outweigh the extra expense.
3
Yes, most riders can be added or removed later, but this may depend on the terms of your insurance policy and provider. Reviewing your options periodically and adjusting your coverage as needed is a good idea.
4
Consider your needs, risks, and financial goals to determine which riders are right for you. Reviewing your current situation and plans can help you identify which riders will provide the most value. Consulting with an insurance advisor can also offer tailored recommendations.
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.
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
Features
Ref. No. KLI/22-23/E-BB/2435
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
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