Importance of Riders in Term Plans - Choose Wisely
A traditional life insurance policy forms a basic hedge between the financial insecurities and your family’s future. In an uncertain life, where as a breadwinner for your family, you may feel stressed about the future of your loved ones in your absence, a life insurance policy seeks to act as a guarantee for their benefit. A traditional life insurance policy is the one that offers guaranteed benefits in the shape of sum assured i.e. death benefit to the nominee(s) of the policy holder, in the event of the policy holder’s demise during policy term. Although a standard term insurance policy does not entitle the policy holder to receive any maturity benefits i.e. financial benefits in case she/he survives the policy term, yet there are other forms of life insurance that provide such benefits. One critical aspect of the policies being offered by various insurance providers today is the option of choosing riders.
Riders are additional benefits that are provided by the insurance provider, in addition to the main plan benefits. There are various riders that come with different features and vary from one plan to the other. In a term insurance plan riders offer various benefits and as such, must be chosen carefully and after due comparison.
Following are the various benefits offered by the optional riders that must be considered before opting for them:
- Riders are extensive benefits that may negate the requirement of choosing any separate policy. This, in essence, means that when you choose a rider, you may get the benefits that were lacking in the main plan. Therefore, there is no need of buying any additional policy for a particular requisite benefit.
- The scope of coverage that gets extended by having a rider actually impacts the overall cost-effectiveness of the entire plan. This is because when, instead of buying a new policy, you purchase a rider, the overall money that you invest in a plan proves to be economical in the long run. As such, having a rider is an additional benefit that must be seen in its entire perspective, depending on your specific needs and requirements.
- Having riders is also subject to tax benefits because the extra premiums paid for the additional riders are subject to tax exemption under Section 80C of the Income Tax Act, 1961.
- Besides taxation, riders actually help you implement your financial plans in a better manner. The money that you save on the overall benefit can be tied up as investment in a different mode altogether. All this is actually very helpful for the overall financial planning.
Therefore, it must be said that although having riders may prove to be beneficial in the long run, yet it must be kept in mind that riders must be chosen carefully after suitably matching your specific needs and requirements.
HDFC Life offers Click 2 Protect Life – an online term insurance plan that offers guaranteed financial protection against the unforeseen maladies like death, disease and disabilities. It seeks to protect your family’s financial needs, even in your absence.
Related Articles
- A Comprehensive Guide for Term Insurance Riders
- Benefits of Insurance Riders
- Importance of Riders in Life Insurance Policy
- What is the Significance of Riders in a Life Insurance Policy ?
Term Plan Articles
Investment Articles
Savings Articles
Life Insurance Articles
Tax Articles
Retirement Articles
ULIP Articles
Subscribe to get the latest articles directly in your inbox
Health Plans Articles
Child Plans Articles
Popular Calculators
Here's all you should know about life insurance.
We help you to make informed insurance decisions for a lifetime.
HDFC Life
Reviewed by Life Insurance Experts
HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.
Popular Searches
- Term Insurance Calculator
- Investment Plans
- Investment Calculator
- Investment for Beginners
- Best Short Term Investments
- Best Long Term Investments
- 5 year Investment Plan
- savings plan
- ulip plan
- retirement plans
- health plans
- child insurance plans
- group insurance plans
- income tax calculator
- bmi calculator
- compound interest calculator
- income tax slab
- Income Tax Return
- what is term insurance
- Ulip vs SIP
- tax planning for salaried employees
- HRA Calculator
- Annuity From NPS
- Retirement Calculator
- Pension Calculator
- nps vs ppf
- short term investment plans
- safest investment options
- one time investment plans
- types of investments
- best investment options
- best investment options in India
- Term Insurance for Housewife
- Money Back Policy
- 1 Crore Term Insurance
- life Insurance policy
- NPS Calculator
- Savings Calculator
- life Insurance
- Gratuity Calculator
- Zero Cost Term Insurance
- critical illness insurance
- itc claim
- deductions under 80C
- section 80d
- Whole Life Insurance
- benefits of term insurance
- types of life insurance
- types of term insurance
- Benefits of Life Insurance
- Endowment Policy
- Term Insurance for NRI
- Term Insurance for Women
- Term Insurance for Self Employed
- Benefits of Health Insurance
- Health Insurance for Senior Citizens
- Health Insurance for NRI
- Best Term Insurance Plan for 1 Crore
- personal accident insurance
- Annuity Calculator