Term Insurance Riders that are an Absolute Must

Basic term insurance coverage at times is not enough to provide a hedge against lifestyle diseases and other ailments. In order to ensure that your loved ones are secure even in case of a major accident or critical illness comes in the way. Term insurance riders are effective tools that provide coverage against a plethora of diseases, medical conditions, and accidents. 

If you are confused over what term insurance riders to purchase, we’ll get that sorted for you. In this thread we’ll be covering some important term riders you should consider buying over your basic term insurance plan in the UAE. 

Critical Illness Term Rider

There are several medical conditions that are can leave temporarily or permanently disabled or in the worst-case scenario can reduce your life expectancy. The cost of treatment and medication for these diseases can reach several thousand Dirhams. Furthermore, if the sole breadwinner of the family gets ill, loss of income is another serious issue as it gets extremely difficult to make ends meet. With the right term rider i.e. critical illness term rider, all the medical expenses incurred are covered by the insurance provider which helps the family to manage the financial expenses. Some of the critical illnesses that are covered under critical illness term rider are as follows-

• Strokes
• Cardiac diseases
• Kidney failure
• Cancer
• Major organ failure
• Heart Attack
• Parkinson’s Disease
• Alzheimer’s Disease 

Permanent/Temporary Disability Rider

Very often road accidents lead to a temporary or permanent disability of the injured, in worst-case scenarios it can lead to death. In case the injured is the only economically productive member of the family with dependents, situations can deteriorate rapidly. Disabilities often leave the patient bedridden resulting in loss of job and income coupled with high medical expenses of treatment. Term insurance plans provide sum assure only in case of the demise of the policyholder which can cause immense trouble in such situations. In order to counter such situations effectively one should go for a permanent/temporary disability rider. With the add-on rider, you would receive a sum assured based on the degree of disability the injured has suffered. If the disability caused is partial you get a portion of the sum assured. Contrary to this if the disability is permanent then the policyholder receives the entire sum assured. 

Accelerated Death Benefit Rider

In case the policyholder is diagnosed with any life-threatening terminal illness a pre-defined portion of the sum assured is provided for the medical treatment. The accelerated death benefit term rider is a useful tool that boosts the protection offered by the basic term insurance plan. However, it is important to be aware of the fact that the amount paid initially by the policy provider will be deducted from the final payout. Different term insurance providers have different terminal illnesses covered in their term riders. Before purchasing the accidental benefit term rider it is highly recommended that one should read the fine print thoroughly. 

Guaranteed Insurance Term Rider

The guaranteed insurance term rider allows the policyholder to purchase additional without undergoing a medical examination. This term insurance rider turns out to be extremely useful during events like marriages, childbirth, etc. With growing age, it becomes difficult to get good coverage at an affordable premium. Using the guaranteed term insurance rider you can easily get a suitable coverage for your loved ones and family. 

Family Income Benefit Term Rider

The primary objective of a term insurance plan is to provide financial stability during the phases of the financial crisis due to the demise of the sole breadwinner. In case of any unfortunate event that leads to the demise of the policyholder, the family income benefit term rider facilitates a steady flow of cash. While purchasing this term rider it is crucial to assess the correct number for which your family will receive income from the insurance plan. 

Waiver of Premium Rider

Certain events in life can lead to phases of economical unproductivity. During such situations making consistent payment of term insurance premium can be an arduous task. The majority of insurance providers terminate the plan in case of irregular payment of premiums. However, if you opt for the waiver of premium term rider the insurance provider waives of the premium in case of any event that causes hindrance in making consistent payments. The term rider helps the policyholder to maintain the blanket of protection even if you are unable to make payments of the premium.

Conclusion

The market is filled with several insurance providers that offer a plethora of term insurance plans. As a customer, it is your responsibility to compare, assess, and analyze the products closely to get the best deal. The future of your family in your absence is dependent on the plan you choose to make the right choice. If you want to maximize the blanket of protection you can add riders to the basic term insurance plan. Term riders not only enhance the protection quotient but also provide peace of mind.