Give extra financial care for family’s safe future

In life, we always wish to protect our loved ones with some form of financial security. We purchase gold, invest in equity stocks or mutual bonds to give them necessary security. But due to the rising inflation costs, better lifestyle, these investments are not sufficient to meet the future scenarios. Therefore, the modern way that provides complete financial security would be life insurance policy. There are lot of insurance companies that cater different customized products with variety of offerings. Right from fuelling investment needs to meeting different financial goals, they come with many objectives for the investor. While you have various types of insurance policies in market, they are also add-ons to supplement life insurance policy with added coverage. These policy add-ons are termed as “Rider”. Riders vary from insurance companies, policy structure, workings and costs. Adding a rider increases your premium to be sure for an extra coverage which is worth the costs. There are many riders available across the industry such as:

Critical Illness Rider

As the name suggests, this rider is your added security towards critical illness scenarios at a minimal cost. It requires the insurance company to pay you a lump sum if you’re diagnosed with one of the major illnesses specified in the insurance policy such as cancer, heart attack, stroke, kidney failure and others.

Term Conversion Rider

It lets you convert your term policy into a permanent one without undergoing a medical exam. This would be beneficial to young couples who may start a family and want to then convert for life-long coverage. It is most often a feature of a term insurance contract that is added to the policy at no costs.

Waiver of Premium Rider

This rider gives waiver so that you don’t have to pay the premiums on your life cover when you are struck with total disability and cannot work. Most companies limit policy till 65. So, just in case you are disabled during the old age for longer than six months, your premiums will be waived and, depending on the policy, the premiums you were paying for the previous six months will be reimbursed.

Disability Income Rider

This rider is a vital one as it sets a regular income for people who are totally disabled and cannot work. The policy will specify the amount of income and how long it will be paid. While some riders only pay if you became disabled from an accident others pay for an accident or illness.

Spousal Rider

It allows you to give extra insurance cover to your spouse instead of buying two separate life insurance policies. It provides term coverage for a specific period of time. So why not just go ahead, and give your spouse the best gift ever?

Return of Premium Rider

With this rider, you pay higher premiums for the opportunity to get all of your money back if you live past the term on your insurance policy.

There are various factors to consider when buying an insurance cover. The amount and type of cover depends on factors like your family members & their future needs, income source, debt, lifestyle, asset in hand, inflation costs etc. Also it determines on your risk taking ability as well. It is advisable that you never set a policy premium beyond your income sources else if you cannot afford to pay premium in time your policy might lapse. Life insurance policy is a very personal decision and should be determined thoughtfully.

Source: http://blogs.rediff.com/lifeinsuranceplans/2016/06/07/ritikashah11998-14/