Riders and Add - Ons

Riders and Add-ons are 'additional benefits' in life insurance products. These are optional to the policyholder.The main characteristics of riders are that

• The option offered with the main contract is valid only if the main contract is valid
• The additional benefit is provided on the happening of specified events
• The option can be cancelled at any time while the main policy is in force

Some riders are given below:

• A Waiver of premium rider: Here the future premium payments are waived from the date of the event. The events include death of proposer in case of insurance plans on children or on joint life plans; or on permanent disability in any insurance plan.
• A Term Rider: The event is any type of death for which there is an additional death benefit
• A Critical illness Rider:  An amount fixed in advance is payable on the happening of the event that there is an affliction with specific critical illness.
• A Permanent Disability Rider: A certain percentage of death benefit and waiver of future premium payment when there is the event of permanent disability on account of accident or disease
• An Accident premium rider: Due to the event of an accident, the benefit payable is usually 2 to 3 times the Sum Assured payable on normal death.

Different types of riders are added as part of the product design according to the requirements of the insured population. Moreover, the Insurance company will assess the financial feasibility of offering riders. Riders will have to be within the statutory regulations given by the Insurance Regulatory Authority.