Insurance riders offer extra protection for an additional premium, but not every add-on is necessary. Here is a look at the riders worth considering, …
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1/6Buying insurance often comes with the option of adding extra benefits to a basic policy. These add-ons, known as riders, offer additional coverage in exchange for an extra premium. But choosing every available rider may not always be necessary. The right choice depends on your existing coverage, financial needs and the risks you want to protect against. Here is a look at some common insurance riders, their benefits and who should consider them. (Image CNBCTV18.com file)
2/6Make sure your base policy is strong | Before spending more on riders, check whether your existing policy provides adequate coverage. Look at the sum insured, waiting periods, exclusions, co-payment clauses and the insurer’s cashless hospital network. If the base policy does not offer sufficient protection, increasing the sum insured or upgrading the policy may be more useful than buying additional benefits. (Image AI)
3/6Which insurance riders are worth considering? | Some insurance riders can offer extra protection based on your needs. An accidental death benefit rider provides an additional payout if the policyholder dies in an accident. A waiver of premium rider helps keep the policy active by waiving future premiums in certain situations, such as a qualifying disability. An income benefit rider provides additional regular income to the policyholder’s family along with the main insurance payout. A critical illness rider pays a lump sum if the policyholder is diagnosed with a covered critical illness. Meanwhile, an accidental disability benefit rider offers financial support if an accident causes a covered permanent or partial disability. (Image AI)
4/6Riders that offer flexibility | Some riders give policyholders more flexibility in managing their insurance. A return of premium rider allows policyholders to get eligible premiums back if they survive the policy term, as per the policy conditions. A special exit value rider lets them exit the policy at a specified stage and receive eligible premiums paid towards the base protection benefit. Meanwhile, a premium break rider allows policyholders to skip premium payments for certain periods while keeping the policy active, subject to the rider’s terms. (Image AI)
5/6Health insurance riders: What should you consider? | Health insurance policies also offer add-ons that can expand coverage. But it is important to check whether these benefits address gaps in your existing policy. A restoration benefit can replenish the sum insured after it has been used up, subject to the policy terms. A reduced waiting period rider can shorten the waiting period for specified illnesses or treatments. A hospital cash rider pays a fixed daily amount during a qualifying hospital stay. (Image AI)
6/6Read the policy terms before paying extra | Riders can have separate waiting periods, payout limits, exclusions and eligibility requirements. Even riders with the same name may offer different benefits across insurers. Compare the additional premium with the actual coverage offered. Check when the benefit applies, how claims are settled and whether any restrictions could affect your ability to use it. In the end, choose riders that give you the protection you need at a reasonable price. It is better to buy a few useful riders than to pay extra for benefits you may not need.(Image AI)