Plans allow systematic enhancement of wealth with insurance
We understand the term ‘rider’ to mean a proviso(s) or condition(s) added to a set of terms and conditions already agreed. A rider is an addition (add-on) to a document and is often added to investment plans that you would buy from insurance companies for insurance and investment purposes. Since standard policies have set terms that leave little room for flexibility, riders help to personalize and modify those terms to large degree. Some of the best investment plans permit such riders; allowing policyholders some ability to modify and customize their policies.
The best online investment plans are those that permit the policyholder some amount of flexibility and the ability to streamline a plan to their own requirements. While the best investment plans will offer significant payouts in the eventuality of the death of the insured, there may be no payouts in the event of an accident causing partial or permanent disability or loss of employment. For instance, a healthy young, nonsmoker male could get coverage of up to Rs.1 crore, for yearly premiums as low as Rs10,000. Riders do increase premium but they also increase protections and eventualities in addition to death of the policyholder.
Riders can increase affordability of insurance. Riders can help to club coverage under an umbrella policy rather than having to buy separate policies for separate needs and eventualities. Since riders increase the conditions of coverage, the insurance policy becomes more comprehensive. For instance, in a health plan, it is possible to choose add-ons for critical cover or maternity cover rather than buy separate policies for these eventualities. This is also possible with investment plans.
Whether you choose term insurance, ULIP or traditional endowment (money back) plans riders help to customize your policy so that you receive cover for eventualities that concern you, your lifestyle and circumstances. The best investment plans also help you receive tax benefits; you can maximize your tax benefit under sections 80D and 80C as well, with the help of the policy riders that you choose.
Riders may only be available at the inception of the policy in some cases, while other plans may permit riders to be added during the pendency of the policy (on policy anniversaries and so on). If the idea of add-ons interests you, find out about these beforehand.
Riders are additional (optional) policy benefits that a policyholder or nominee will get benefit of in the event of a specific eventuality. These benefits are over and above the standard coverage of a policy. The riders that a policyholder can opt for may vary significantly from one to another insurance company; the riders available for term plans and endowment plans may also differ considerably. However, the best online investment plans usually offer customers the choice to opt for crucial riders such as accidental disability riders, critical illness riders and waiver of premium riders. Several other add-ons are also available; you can choose the ones that make the most sense to you; not necessarily the ones that come at attractive prices.
As a policyholder, you would be required to make a decision regarding riders to opt for based on the assessments of one’s lifestyle, line of work, family health history and so on. Do not opt for riders to investment plans because they appear attractive or affordable. Instead, opt for riders that would be required realistically in the unfortunate event of a death, accident or disability.