A term life insurance policy is a way to ensure that your family or nominee gets an amount sufficient for them to survive for some time after you pass away. This type of insurance is preferred by many since it comes at a low premium and the insurance pay-out is quite sufficient. A term plan is also an easy form of insurance and anyone who is not familiar with financial terms and processes can understand this type of insurance easily.
However, only a term plan is not sufficient security for a policy holder. A term life insurance plan will only give you returns if the policy holder does not survive the term of the insurance, but there are other instances that may render someone incapable of working, such as disability, loss of mobility etc. and in such cases your term insurance policy will not help you financially at all.
To overcome situations such as these, the policyholder can buy add-ons to their term plans. These add-ons or riders can help you supplement your income if you are faced an unforeseen circumstance like an accident, or a serious illness. Here are some add-ons that you must absolutely invest in.
1. Accidental Disability Rider: Your term plans might pay your nominee if the policyholder suffers an accidental death but they will not pay if the policyholder is rendered disable due to an accident. This is when an accidental disability rider comes to your rescue. This rider can help you supplement your income and pay for your treatment and hospital stay if you’re faced with an accident and rendered disable.
2. Critical Illness Rider: In today’s day and age, you never know what kind of disease or illness you might be faced with. The number of people suffering from heart diseases and cancer has gone up exponentially in the recent past. A term life insurance plan with a critical illness benefit can help you pay for your treatment and hospital stay, which can cost a patient a few lakhs atleast.
3. Waiver of Premium Rider: When you invest in a term life insurance plan you sign a contract that states that you need to pay a premium at regular intervals for your nominee to receive the insurance benefit. But what happens if you are unable to pay your premium due to loss of a job or ability to work due to an illness or disability? The waiver of premium rider waives of all your future premiums if you are faced with an accident or illness and are unable to pay your premiums.