All About Term Insurance Inbuilt Coverage

A term insurance plan is a pure life insurance policy. You pay a pre-decided amount as premium for a pre-determined period of time, and the term plan offers your nominee a sum assured in the unfortunate event of your demise during the policy term. The sum assured is chosen at the time of purchase and can affect the premiums that you pay for the policy. However, a term plan is not limited to only the death benefit. There are other ways to enhance the scope of your policy’s features. One such popular way of enhancing the nature and extent of your term insurance plans coverage are inbuilt coverages or riders or add-ons.

This article talks about a term insurance plan’s inbuilt coverage. Read on to know more.

What is inbuilt coverage of a term insurance plan?

Since life can throw multiple curveballs at you, the scope of coverage of a term plan should also be extensive. This can be done with wide inbuilt term insurance coverage. Inbuilt term insurance coverage refers to riders and benefits that can offer you and loved ones financial protection at unexpected times.

Riders can be additional bought, over and above your base term insurance, at an additional premium. These add-on covers offer protection against specific circumstances, and their coverage is restricted to the pre-determined set of circumstances.

Some common riders that you can add to your term insurance plan include:

1. Critical illness rider: A critical illness rider offers you financial security against the costs of treatment of critical medical conditions. Each term insurance policy has a list of critical illnesses mentioned in the policy document. The costs of hospitalization, medicines, doctor’s appointments, surgeries, ambulance, etc., can be covered with this benefit.

2. Permanent disability rider: In case of permanent disability in an accident, an extra percentage of the sum assured is paid out to you with this rider. This takes care of your additional expenses that may arise when you lose your ability to earn an income because of a permanent disability.

3. Accidental death rider: With an accidental death rider, your nominee receives an accidental death rider over and above the death benefit in the unfortunate event of your demise due to an accident.

All these riders add to the coverage of your term insurance plan and can be bought at a nominal cost over and above the base premium for your policy.