Insurance Policy Riders: Huge Benefits at Low Cost

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Insurance Policy Riders: Huge Benefits at Low Cost

Posted On : Sep-28-2010 | seen (480) times | Article Word Count : 635 |

Different people have different requirements, and even with a plethora of life insurance policies available in the market from innumerable insurance agencies, it is generally difficult to find an insurance policy that meets all expectations and fulfills all requirements at the same time. This is when riders can be added to a policy to enhance its advantages or limit its cost.

Life Insurance Riders provide extra benefits over and above your base policy coverage in case of unforeseen circumstances like critical illness, permanent disability or loss of income due to various reasons that are not generally covered by basic life insurance.
Riders work as add-on’s that can be attached to almost any policy type, be it a child education, pension plan or general investment planning policy. The most common type of insurance riders offered by almost all insurers include waiver of premium rider, accidental death / disability benefit rider, critical health illness rider, guaranteed insurability rider and family income benefit rider. Besides these, there are many other variations offered by individual insurance agencies to prove their uniqueness in this tough competitive world of insurance. For example, ING Life insurance provides Accidental Death, Disability and Dismemberment Rider wherein if the insured dies within policy period due to accident, or sufferers permanent disability within 6 months of accident or loses a limb due to accident, then he/she is entitled to receive an extra benefit equal to his sum assured on basic policy not exceeding Rs. 20,00,000/-

Besides providing customized special benefits through riders, the biggest advantage is that the benefits can be availed at a nominal cost. Since no single policy can satisfy all requirements of a policy taker, he may be forced to take more than one policy to achieve his financial investment planning objective. But instead if he opts for attaching a rider to a policy of choice, the benefits of an overall satisfying policy can be attained at marginal increase in premium on the basic policy itself.

Another advantage of riders that most are unaware of is that riders can also help reduce expenses on some policies. It may so happen that you find a perfect life insurance India policy matching your objectives, but the cost is too high. Upon inquiry from your agent and insurance company it can be sometimes possible to add a rider to such a policy thereby reducing coverage to an unimportant area, and hence reduce your total payable premiums.

Riders like accidental death benefit and critical illness are a must have in any individual’s insurance portfolio. For instance, critical illness riders may seem to provide the same financial security as any medical insurance, but the illness rider becomes effective as soon as the illness it is covered for is detected. In contrast, a medical insurance can only provide reimbursement of expenses already incurred for treatment. Hence, critical illness rider provides much needed financial support exactly on time.

Similarly, taking a medical rider can help you avoid the burden of extra premium in case you are diagnosed with an illness not existing while taking an insurance policy. In most such cases, the existing policy becomes void and the insured is required to take a fresh policy covering the extra health risk at higher premiums. But by attaching a medical rider to your policy at a healthy and early age ensures that even after claiming the riders and a medical condition being detected, the base policy continues to exist at the same old premium rates.

The icing on the cake is tax breaks on riders. Critical illness and health riders are entitled to a maximum benefit of Rs. 10,000 under Sec. 80D. Premium payments on all other riders get tax benefit up to Rs. 1 lakh. Besides, when claims are made on riders they are exempt under Sec. 10(10D).

Thus, riders besides being necessary add-ons, also provide some great benefits. All you need to do is study them well and choose only those that serve your purpose. By paying a little extra for some excellent security benefits, you can ensure a safe and secure future for yourself and your loved ones.

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<h1>Insurance Policy Riders: Huge Benefits at Low Cost</h1> Author: <a href='http://www.articleseen.com/profile_Sanjay Mathew.aspx'>Sanjay Mathew</a> Life Insurance Riders provide extra benefits over and above your base policy coverage in case of unforeseen circumstances like critical illness, permanent disability or loss of income due to various reasons that are not generally covered by basic life insurance.
	Riders work as add-on’s that can be attached to almost any policy type, be it a child education, pension plan or general investment planning policy. The most common type of insurance riders offered by almost all insurers include waiver of premium rider, accidental death / disability benefit rider, critical health illness rider, guaranteed insurability rider and family income benefit rider. Besides these, there are many other variations offered by individual insurance agencies to prove their uniqueness in this tough competitive world of insurance. For example, ING Life insurance provides Accidental Death, Disability and Dismemberment Rider wherein if the insured dies within policy period due to accident, or sufferers permanent disability within 6 months of accident or loses a limb due to accident, then he/she is entitled to receive an extra benefit equal to his sum assured on basic policy not exceeding Rs. 20,00,000/- 
	
	Besides providing customized special benefits through riders, the biggest advantage is that the benefits can be availed at a nominal cost. Since no single policy can satisfy all requirements of a policy taker, he may be forced to take more than one policy to achieve his financial investment planning objective. But instead if he opts for attaching a rider to a policy of choice, the benefits of an overall satisfying policy can be attained at marginal increase in premium on the basic policy itself. 
	
	Another advantage of riders that most are unaware of is that riders can also help reduce expenses on some policies. It may so happen that you find a perfect life insurance India policy matching your objectives, but the cost is too high. Upon inquiry from your agent and insurance company it can be sometimes possible to add a rider to such a policy thereby reducing coverage to an unimportant area, and hence reduce your total payable premiums.
	
	Riders like accidental death benefit and critical illness are a must have in any individual’s insurance portfolio. For instance, critical illness riders may seem to provide the same financial security as any medical insurance, but the illness rider becomes effective as soon as the illness it is covered for is detected. In contrast, a medical insurance can only provide reimbursement of expenses already incurred for treatment. Hence, critical illness rider provides much needed financial support exactly on time.
	
	Similarly, taking a medical rider can help you avoid the burden of extra premium in case you are diagnosed with an illness not existing while taking an insurance policy. In most such cases, the existing policy becomes void and the insured is required to take a fresh policy covering the extra health risk at higher premiums. But by attaching a medical rider to your policy at a healthy and early age ensures that even after claiming the riders and a medical condition being detected, the base policy continues to exist at the same old premium rates.
	
	The icing on the cake is tax breaks on riders. Critical illness and health riders are entitled to a maximum benefit of Rs. 10,000 under Sec. 80D. Premium payments on all other riders get tax benefit up to Rs. 1 lakh. Besides, when claims are made on riders they are exempt under Sec. 10(10D).
	
Thus, riders besides being necessary add-ons, also provide some great benefits. All you need to do is study them well and choose only those that serve your purpose. By paying a little extra for some excellent security benefits, you can ensure a safe and secure future for yourself and your loved ones. 
About the Author: We represent one of the top life insurance company India. Our product ranges from life insurance, <a rel="nofollow" href="http://www.inglife.co.in/productcenter/productcenter-retirement-goldlife.shtml">pension plan</a>, child education plans and many other financial planning products. Our online advisers and calculation tools will help you to pick the best <a rel="nofollow" href="http://www.inglife.co.in/pua/index.aspx">insurance policy</a> that meets your requirement. Article Source: <a href='http://www.articleseen.com/Article_Insurance-Policy-Riders-Huge-Benefits-at-Low-Cost_35163.aspx'> http://www.articleseen.com/Article_Insurance Policy Riders: Huge Benefits at Low Cost_35163.aspx</a>

Article Source : http://www.articleseen.com/Article_Insurance Policy Riders: Huge Benefits at Low Cost_35163.aspx

Author Resource :
We represent one of the top life insurance company India. Our product ranges from life insurance, pension plan, child education plans and many other financial planning products. Our online advisers and calculation tools will help you to pick the best insurance policy that meets your requirement.

Keywords : life insurance India, financial investment planning, ulip, pension scheme, pension plan, insurance policy, child education, l,

Category : Finance : Insurance

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