Here's how you can Enhance your Coverage with Term Insurance Riders

While looking for term insurance plans in the UAE, we come across add-on riders. The term ‘rider’ may be defined as an additional benefit over the basic coverage of the plan opted with the objective of customizing the protection offered by the plan. If you are looking forward to getting a term insurance plan in the UAE to hedge against uncertainties you should consider getting add-on riders to ensure that you extract the maximum out of the plan. Very often insurance seekers are stuck on the dilemma of choosing the right add-on riders so that they can enhance the protection offered by their term insurance plan. However with a wide variety of term riders available in the UAE insurance its becomes a baffling task, hence in this thread, we’ll be providing a detailed insight on how you can enhance the coverage of the term insurance plan in the UAE via add-on riders. 

Important Factors to Consider

Typically the average cost of term riders is 5 to 10% of the base policy. In order to maximize the protection provided the basic plan; insurance seekers should purchase term riders at the time of issuance of the policy. When insurance riders are purchased at the time of policy inception they cost is lesser in comparison to purchases made after the inception of the family. The basic purpose of buying additional riders is to get more than what the basic term insurance is supposed to offer. Some of the most common term riders are personal accident riders, temporary/permanent disability rider, and critical illness rider.

Making the Choice: Stand Alone Term Insurance or Add-on Riders?

While browsing the internet for the best term insurance plan and riders you may have come across covers with critical illness and personal accident coverage in the form of a standalone policy and rider both. However, it should always be kept in mind that add-on term riders are less expensive in comparison to standalone term insurance plans.

After closely looking at the economic aspect and the protection quotient insurance seekers are confused about whether to go for add-on term rider or a standalone term insurance plan. The choice here depends on the requirement of the buyer. If the insurance seeker is looking for a specific type of coverage for a limited period then add-on term rider is the right choice to make. Contrary to this if you are looking for comprehensive protection for your dependents for a relatively long time frame, in that case, the standalone term insurance plan is the ideal choice. 

Types of Term Riders and their Utility

There are numerous term riders available over the basic term insurance plan, here’s a quick rundown:  

In a Nutshell

Riders are additional benefits that can be added to the policy in order to increase the protection quotient of the basic term plan. Before you go ahead and purchase a term insurance plan with add-on riders it is highly recommended that you indulge yourself in some thorough market research and analysis to understand the functionality of riders. Furthermore, before you add a term rider into your plan assess your requirement and ask yourself, do you actually need the coverage?

It is not permissible to modify life/term insurance plans, but with the right rider in place, you can transform the plan and gain control over the dynamic situations in life.