Insurance Riders- Big things come in little packages
Insurance Riders- Big things come in little packages
Say you are out to have a pizza and are fond of cheese, you wouldn't order two pizzas to have your fill that would be an expensive way to satisfy your craving; you'd just go for an extra topping of cheese.
Let us talk about insurance riders. Riders are typically additional benefits that can be added to your base insurance policy to enhance your insurance cover at a relatively lower cost.
Some of the reasons why you should consider taking up riders along with your insurance policies are:
1.Low Cost: Riders help you meet your needs for financial protection and enhance your insurance to cover certain specific risks at fairly affordable costs.
* Rider premiums are used to cover the cost of the underlying risk only and have minimal administrative costs on account of being an add-on' to an existing base insurance policy.
* Taking up a rider can be more cost effective than taking another insurance policy to meet your additional risk coverage needs.
2.Continued base insurance coverage: Some of the riders offered are structured such that in the event of a rider claim', the benefits associated with the rider are paid out and just the rider coverage gets terminated while the base insurance plan coverage is continued.
3.Option to Choose: You can pick and choose which rider suits you best from available options depending upon which specific need you are trying to address
Amongst the various kinds of riders available, here are some of the following that one should actively consider:
Accidental Death Benefit Rider: As the name suggest, this rider provides you with an additional cover in addition to the Sum Assured of your basic policy payable to your dependents / nominee in case of death due to an accident. Although restricted to death on account of an accident, this rider could be a very cost effective mechanism to make a significant enhancement to your risk cover at a low cost.
Accidental Disability and/or Dismemberment Rider: You could insure against disabilities arising out of an accident by opting for this rider. In case of an accident resulting in total or partial disability/dismemberment during the term of your base policy, a Rider Sum Assured will be paid out to you while your base life insurance policy continues to provide you with a life cover. Though some companies offer a disability benefit only in case of permanent disability; there are riders that offer permanent and partial disability benefit in the event of an accident (with certain clauses that vary for every insurer). This can be an important risk cover to mitigate the financial hardships associated with a sudden and unforeseen accidental disability.
Waiver of the Premium Rider: If a policy holder is under any circumstances unable to pay his premiums (falls seriously ill or dies), the policy still remains active. The time period of premium waiver might vary depending on various product terms and conditions. The premium on this rider is set in accordance with the premium being paid on the base policy and other riders, if any. This rider proves to be most beneficial in case the premium on the base policy is relatively high or in products such as Child Plans where the purpose of the policy is long term savings to secure your child's future.
Critical Illness Benefit Riders: This rider provides coverage against certain critical illnesses. Though the number and type of diseases covered under these riders are limited, yet the one's covered, like cancer, coronary artery bypass, heart attack, kidney/renal failure, major organ transplant and paralytic stroke etc.; are those with fairly high associated medical treatment and hospitalization costs. One of the attractive features under the critical illness benefit rider is that the policy holder gets an amount equal to the sum assured irrespective of the medical expenses on or after the diagnosis of the critical illness. A plan that continues to give an insurance cover while charging a marginally higher premium, is always better than the one's which terminate the base policy once a claim is made on the rider.
Level Term Cover Rider: This particular rider provides you the option to enhance your risk cover for a limited period up to a maximum sum equivalent to your base policy. It basically offers a death benefit only and helps the survivors to pay any unforeseen expenses or clear off all the liabilities of the policy holders. If you do not have adequate term insurance coverage and are in the process of buying a savings oriented or endowment plan, then you may want to consider this rider.
Double Sum Assured Rider: In case of an ill-fated death of the policyholder, this rider provides for an additional equal amount corresponding to the basic sum assured. As compared to opting for a larger endowment policy, you could double your life cover at a nominal cost with this rider.
The needs of every individual vary - adding appropriate riders to your base insurance policies can ensure adequate coverage for you and your family at fairly affordable prices. Insurance business Adjustment of insurance activity Hunger Bowl 2011 Live Nevada Vs Boston College Online Stream Football Tv Coverage Hunger Bowl 2011 Live Nevada Wolf Pack Vs Boston College Eagles Online Stream Football Tv Coverage Kraft Fight Hunger Bowl Live Wolf Pack Vs Eagles Online Stream Football Tv Coverage Big rig insurance with best quotes Basic Facts About Errors Omission Insurance Avoid These 3 Mistakes to Conserve Money on Individual Wellness Insurance Importance of Errors and Omissions Insurance Pay as you drive strategy means lower Commercial Truck Insurance How Truck Insurance Brokers Provide Assistance To You How A Truck Insurance Quote Can Impact Savings And Safety Ppi Insurance: The Best Solution For All Your Problem