What are Term Insurance Riders and Their Benefits?

term plan

In today’s time, a term insurance plan is a must for everyone as it acts as a savior that protects your family during unforeseen situations. The term plan is a flexible policy that enables you to protect your finances through a variety of insurance riders.

With customizable insurance riders, term plans ensure to cater to the needs of the insurer. You can now choose the type of policy you want for your family and avail yourself of them at an affordable price. However, before selecting a flexible term plan, you need to know about the types of insurance riders applicable to it. Therefore, let us see the complete guide of life insurance riders to understand the term plan well.

What does an Insurance Rider Mean?

The insurance riders are an addition to the term life insurance policies. You can alter a term plan with insurance riders to personalize it according to your requirements. Simply put, insurance rider is an additional benefit that you can add to your base policy. The general life term insurance provides only coverage for the life of the insurer.

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Death is not only the uncertainty that occurs in human life. There are many more unfortunate circumstances such as illness, accidents, disabilities that are not considered for claim under a basic life term plan.

However, with an insurance rider, it is possible to boost the standard policy. You can add a critical illness rider or any other rider of your choice with the life term plan. Even though the insurance rider comes at a cost, it also leads to maximum benefits. Choosing the perfect insurance rider can match your policy needs.

The types of insurance riders available

Accidental death benefit rider

It is an insurance rider that offers an extra claim for accidental deaths. If you are a life insurance policyholder, then adding the insurance rider is more beneficial to you. If the insurer dies due to an accident, it is possible to receive both death compensation and benefits for accidental death under this rider.

Accelerated death benefit rider

If an individual is suffering from a critical illness, then the family spends a massive amount on medical expenditure. If the patient applies for the accelerated death rider with term life insurance, it is possible to get a partial amount for medical treatment. It is an ideal insurance rider at the time of a medical emergency.

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Disability benefit rider

 Life is very uncertain. You never know what may happen next. Although, with a disability benefit rider, you can be prepared for any unforeseen situation that arises out of total and permanent disability caused due to an accident. If a policyholder becomes totally and permanently disabled due to an accident, then the disability benefit rider provides financial assistance to the insured and the family. 

Critical illness benefit rider

The critical illness benefit rider is fully claimable if the policyholder is diagnosed with a critical disease. To avail of the lump sum, the insurer must specify the critical illness before undergoing any surgery. Cancer, heart surgery, kidney transplant, etc. are some of the critical illnesses specified under this rider.

The benefits of choosing life insurance riders

● An addition to the life insurance policy

Insurance riders prevent individuals from investing in two different insurance policies. Without choosing another policy, you can easily make an addition to the current term plan through an insurance rider. The insurance rider is entirely beneficial as it allows you to customize your policy needs based on your requirements.

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● It is a more affordable insurance plan

Life insurance riders are more affordable than choosing a new insurance policy. The rider addition may cost you but, not more than buying a new policy. In short, it helps you to customize the term plan cost-effectively.

Flexibility to modify a term plan

Adding the insurance rider is solely the choice of the policyholder. It is a flexible plan to modify your current term plan. You can avoid unnecessary claims and personalize the policy as you prefer.

Leverage tax benefits under the law

The tax benefits available to your general term plan are also applicable to the insurance rider. Without buying another policy, you can enjoy tax deductions in the current insurance plan by adding riders.


The life insurance rider provides the freedom to customize your term plan. With its flexibility, customizability, and cost-effectiveness, you can enjoy more benefits from your basic life term plan.

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