RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

What is the Significance of Riders in a Life Insurance Policy ?

down-arrow
What is the Significance of Riders in a Life Insurance Policy?
April 04, 2023

Table of Content

 

A life insurance policy has become one of the most preferred investment instruments. Such a policy provides life cover in case of an unfortunate event of death. This amount provides a much-needed financial security to your loved ones even in your absence. Life insurance policies also help in long-term savings, specific life-stage planning, and provide tax advantages too. Such plans, therefore, provide a host of benefits, thus making it a popular option among individuals.

Understanding riders

Riders, also known as add-ons, are additional benefits that you may avail of in order to increase the coverage of your existing insurance policy. You may opt for riders along with your current policy by paying an additional premium.

You may choose from among various rider options based on your current and future needs. There are numerous rider options available, such as critical illness rider, disability rider, accidental death benefit rider, term rider, and waiver of premium rider. For example, if you opt for an accidental death benefit rider and in case of your demise due to an accident during the term of the policy, this rider will provide death benefit to your loved ones. This will help your family meet their financial obligations even in your absence.

It is important to understand that once a claim for the rider has been made, the benefits of the rider cease to exist. However, the original insurance will continue to provide insurance coverage as per the policy terms.

Benefits of riders in life insurance policies

Riders provide financial security over and above the benefits of your regular policy. It provides peace of mind, knowing that your financial needs will be taken care of in case of an unfortunate event.

Following are four major benefits of availing of a rider along with your life insurance policy.

1.Additional coverage

By purchasing an add-on along with your existing plan, you may avail of the benefit of comprehensive coverage. For example, a critical illness rider pays a lump sum upon diagnosis of a critical illness. This amount may be used to meet the ever-increasing medical costs, household expenses, loan repayment, and any other expenses.

2.Flexibility

Another benefit of a life insurance rider is the flexibility it offers. You may choose from numerous options and customize your policy as per your needs. In order to identify the rider best-suited for you, it is important to take numerous aspects into consideration such as age, gender, and history of family illnesses, among others.

3.Affordability

You may seek comprehensive coverage without investing in a new insurance plan. This makes a rider more affordable than buying a separate insurance policy. By merely paying an additional premium, you may enjoy greater coverage at an affordable price.

4.Tax benefits

You may also avail of tax benefits on the amount paid towards your riders. For example, you may enjoy tax deductions under Section 80C of the Income Tax Act, 1961 on the amount paid towards an accidental death rider. Furthermore, Section 80D of the Income Tax Act, 1961 offers benefits on premiums paid towards critical illness rider.

Life insurance riders provide comprehensive coverage and help you customize your policy to address specific concerns. You may, therefore, compare various rider options and avail of the ones that best suit your needs.

Related Articles: 

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

Blue Chip Fund

Blue Chip Fund

"Blue chip fund invests in stocks / shares of well-established companies with credible financial performance, market capitalization & steady payout of dividends."

Diversified Equity Mutual Funds

Insurance Overload: Are You Hoarding Policies Instead of Securing Your Future?

Single Premium Term Insurance: Meaning, Benefits & Types

Explore the details of a Single Premium Policy in term life insurance. This guide provides insights into its meaning, benefits, and types, offering a comprehensive overview.

Single Premium Term Insurance: Meaning, Benefits & Types
Planning to set up an independent venture? Secure your funds from associated risks Previous
6 Things You Didn’t Know Life Insurance Could Do Next
HDFC life
HDFC life

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 Search

Popular Searches