What are Riders in Term Insurance and why are they Important

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

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

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more


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.

Kotak e-Term Plan

Why Should You Add a Rider to a Term Insurance Plan?

Term Insurance Riders, also known as add-ons, offers a customized cover at an additional premium. Click here to know what are riders and common riders that term insurers offer.

  • Sep 12, 2018

Term plans are an excellent option for those looking for a pure life cover. Such plans offer insurance coverage against an unfortunate event of the death of the policyholder during the policy term. The insurance provider offers the sum assured amount to the beneficiary, which may be used to meet various financial obligations. This amount, therefore, acts as an income replacement, especially if you are the breadwinner of the family. Term plans are also known for their affordability, offering a high level of insurance cover at a low premium. Besides, you may enjoy tax benefits towards premiums paid up to an amount of INR 1.5 lakh under Section 80C of the Income Tax Act, 1961. The death benefit amount too may be claimed for tax deduction under Section 10(10D).

What are riders?

Insurers provide allow you to supplement your existing term insurance policy through riders. These riders, also known as add-ons, allow you to enjoy a customized cover at an additional premium.

Know MoreCalculate Premium

Following are five of the popular and common riders that term insurers offer.

  • Critical illness add-on

It is important to note that term plans do not offer coverage for critical illnesses such as heart attack, cancer, or brain tumor, among others. Upon diagnosis of any of the critical illnesses as per your policy document, you are entitled to receive a lump sum amount. This helps you meet medical expenses towards the treatment of the disease without any financial difficulty.

  • Waiver of premium rider

Financial constraints may prevent you from making premium payments towards your term insurance plan. Opting for a waiver of premium rider ensures that you continue to enjoy the policy benefits even if you fail to pay the premium amount. Your term plan, therefore, does not lapse completely.

  • Income benefit rider

In case you are the breadwinner of the family, chances are that your family may be left financially crippled in an unfortunate event. To avert such a scenario, you may purchase an income benefit rider. This rider provides a regular stream of income to your beneficiary, for a specified period, say five to ten years. Your loved ones may, therefore, manage their finances easily and have a good lifestyle even in your absence.

  • Accidental death rider

As the name suggests, this rider in term insurance offers insurance coverage against an accidental death. The insurance provider is entitled to offer an additional sum over and above the sum assured amount, in an event of death due to an accident.

  • Accidental disability rider

Some accidents may leave you with a temporary or permanent disability. In an occurrence of such an event, an accidental disability rider comes to the rescue. The insurer provides a pre-defined percentage, of the sum assured amount, for a certain timeframe, say five to ten years. This amount may also be treated as an income replacement since you may lose your ability to work on a temporary or permanent basis.

Riders in term insurance maximize your insurance coverage and help you gain control over the financial security of your loved ones. You may, therefore, choose the most appropriate riders according to your requirements and enjoy peace of mind at all times.

Explorer term insurance plan

Know MoreCalculate Premium

Kotak e-Term Plan

Download Brochure


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


- A Consumer Education Initiative series by Kotak Life

Similar Articles

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

8 Factors to consider before choosing a Critical Illness Insurance

What Is a Renewable Term Insurance Policy?

Should Youngsters, Working Couples Buy Term Insurance Plans?

How To Change The Nominee in Term Insurance?

How Not To Get Your Term Insurance Claim Rejected

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Choosing Riders for Insurance Plans

5 Term Insurance Benefits for Single Women

Term Insurance With Riders In India

Term Insurance: What Happens When You Don’t Pay Your Premiums?

How to Surrender Term Life Insurance When You Have No Liabilities?

Why You Must Include In Your Financial Planning?

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

Advantages & Disadvantages of Term Insurance in India

Advantages of Buying Term Insurance in Your 50s

Reasons You Need Term Insurance Plan as a Self-Employed Person

How Does A Term Life Insurance Work in India?

5 Benefits of Early Retirement Planning

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

What Is the Correct Age to Buy Term Insurance?

While Buying Term Insurance Compare Features, Not Just Premiums

How Much Term Insurance Do I Need

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

Term Insurance Calculator - Everything You Need To Know

How Does Term Life Insurance Work? Learn the Benefits

भारत में जीवन बीमा कितने प्रकार के होते हैं?

Why Term Plan Should Be The First Step To Securing Your Future?

Eligibility Criteria for Buying Term Insurance in India

Difference between Section 80C and 80CCC of the Income Tax Act, 1961

9 Most Frequently Asked Questions on Term Insurance

Different Types of Protection Plans

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

Why Term Insurance Is Important in times of COVID-19?

4 Reasons Why You Need Critical Illness Cover

Is term Insurance Needed for People With No Dependents?

Can I Get Term Insurance on Behalf of My Spouse?

Should you buy a Renewable Term Life Policy?

Why Should You Buy Term Insurance in 2022?

Steps on How to Buy Term Insurance Online

Why should single women purchase term life insurance?

Can I Make Changes to My Term Insurance Policy Post Purchase?

Do You Need Term Insurance Cover After Retirement?

How To Calculate The Amount Of Term Life Insurance You Need?

5 Things To Consider While Buying Term Insurance Plan

Ensure Protection Against Death, Disease & Disability With Life Insurance

Insuring Against Accidents with an Accidental Death Insurance Rider

Tax Benefits of Term Insurance in India

How Much Term Life Insurance Cover Do I Need?

Make Your Online Term Plan Your Family's Monthly Pay Cheque

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

Side Effects of Covid-19 Booster Doses

Term Insurance Age Limit – Term Plan for All Age Groups

Is Life Insurance Investment Worthy Enough

Different Types of Premiums in Term Insurance?

Why 1 Cr Term Plan Is Necessary For Family?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

What Are Insurance Riders and How to Choose Them in a Term Plan?

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Protection for your family

What are the Tax Benefits of Sukanya Samriddhi Yojana (SSY)?

4 Things To Expect From Your Term Insurance Plan in India

Endowment Plans vs Term Plans: Understanding the difference

Does Term Insurance Cover Accidental Death?

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

Form 16, Form 16A, and Form 16B?

Why Should You Not Take A Term Plan Without Medical Test in India?

Why Buy Term Insurance Even at Rising Rates?

9 Point Guide on how to File Income Tax Return Online

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

What Are the Best Term Insurance Plans for Planning Retirement?

How To Choose the Right Sum Assured Under a Term Plan?

How to Identify Term Insurance According to Your Needs?

Comparing Term Plans – What Should You Look Out For

Insuring Against Disability With Disability Insurance Rider

Why Buy Term Insurance Plan With a High Cover?

How Much Cover Should I Take In A Term Plan?

How to Compare Term Insurance Online

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Online vs Offline Term Insurance: Which Is The Better Option To Buy

Can I Buy Term Insurance for a COVID-19 Patient?

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

भारत में गृहणियों के लिए टर्म इंश्योरेंस

8 Things To Do After Buying Term Insurance

How To Choose the Right Term Insurance Plan?

Can I Extend the Tenure of My Term Insurance Plan?

9 Tax Changes in Budget 2019 that may Impact Your Personal Financial Planning

Is a Term Insurance Policy Portable?

What is Term Insurance? Term Plan Meaning and Definition

Can Senior Citizens Avail Term Insurance?

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

How to Ensure That Your Term Insurance Claims Are Never Rejected?

Why Term Insurance Is Better Than ULIP?

Term Plan with Spouse Cover

Term Insurance Basics You Should Know

What Should You opt for - Limited or Premium Pay?

10-Year Term Life Insurance Policy - Explained in Detail

What Types of Deaths Are Covered in a Term Insurance Plan?

What is Critical Illness Policy?

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

All About Term Insurance Inbuilt Coverage

Term Life Insurance Plan for Smokers vs Non-Smokers

What All Documents Required For Term Insurance In India?

Cost of Term Insurance Likely to Increase Soon

Why Spending Time with Friends is Essential for Your Mental Health?

What is Insurance Premium - A Detailed Guide

3 Things to Consider When Buying Term Insurance, If You are Single

Top 3 Reasons Why You Should Buy A Term Plan Now

Increasing Term Insurance and Riders

Understanding Term Insurance Riders

Do Beneficiaries Pay Taxes on Term Insurance?

Can Term Insurance Plans Be Purchased As A Gift?

All about Online Income Tax Calculator

What Should Be The Duration Of Your Term Plan in India?

5 Reasons to Buy Term Insurance When You are in Your 30s

Insurance Policy for Housewife In India

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

9 Ways to Help Family Members in Financial Trouble

Is Group Term Life Insurance Provided By Employer Sufficient?

Term Plans are Definitely Cheaper than You Think!

What are the Documents Required for Term Insurance Plan?

What is a term insurance plan with a return of premium, and how does it work?

Tips to Choose the Right Term Period for Term Insurance Plan

Which Death Type Does Your Term Plan Not Cover?

6 Reasons That Make Term Insurance a Must Buy

Calculating Term Insurance Premium

Do I Need to Give a Medical Test for Term Insurance in India?

Difference Between Term Insurance and Endowment Plan

Is ₹1 Crore Term Insurance Good Enough Cover?

Planning For Son or Daughter's Wedding

Is There Any Tax Benefit on Term Insurance?

Does Your Term Insurance Plan Cover Death Due to COVID-19?

8 Benefits of Term Insurance You Should Know

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

Make Your Online Term Plan Your Familys Monthly Payout

Why Premium Amount for Term Insurance is So Low?

What are incremental term insurance plans?

Individual Life Insurance vs. Group Term Life Insurance

Buying A Term Insurance Plan? Take These Factors into Account

Planning For Children's Future

What Happens if you Hide Facts in your Term Insurance?

All you need to Know about Term Insurance Plans for housewives

Is It Good To Buy A Term Insurance Plan In 2022?

Gift Your Father A Term Insurance Plan This Father's Day

Busting Myths and Facts About Term Insurance Policies

Why is it important to buy term insurance plan?

Importance of Term Insurance at Every Stage of Your Life

Insuring yourself against Ill Health with a Critical Illness Rider

Should you have more than one nominee in your term insurance?

Insuring Protection Against Death With Death Insurance Rider

Should You Buy a Term Plan After 40?

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

Term Insurance vs Life Insurance: Understand the Difference and Benefits

Why does every working women need life insurance?

Term Insurance with Critical Illness

Is Term Life Insurance Plan an Investment or Expense?

4 Methods to Calculate How Much Term Insurance You Need

Term Insurance: Smokers vs Non-Smokers

Should You Have Multiple Term Life Insurance Policies?

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Know How to Invest at Every Age for Larger Returns

Can You Increase Your Term Insurance Cover?

How do I Calculate My Term Insurance Premium

Zero Cost Term Insurance Plan: What is & Should you buy it?

Term Insurance Plans and Policies for Smokers

Why Married People Should Buy Term Insurance Under MWP Act?

12 Types of Death not covered in Term Insurance Plans

10 Ways to Mentally Refresh After a Stressful Day

What is a short term insurance policy?

Everything About Claim Settlement Ratio for Term Insurance

Why Should New Parents Buy Term Life Insurance?

6 Types of Death not covered in Term Insurance Plan