Hyderabad: A term policy benefit will be given only when something happens to the policyholder. What if the income earner of a family sustains injuries and loses earning power? Or falls ill with chronic diseases, becomes permanently disabled, and loses the ability to work anymore. Many people do not think about this but we should not take such possibilities lightly. This is why policies should be taken in such a way that they would come to our rescue even if we lose income temporarily or permanently.
In this respect, the supplementary rider policies will come handy to provide added security to the holders of primary term policies. Insurance companies provide these supplementary plans in addition to the main term policies. Think twice before choosing one or more of such rider policies for your and your family's safety.
A primary term plan will yield compensation only on the demise of the policyholder. If there is an 'accelerated death benefit rider' (ADB), additional compensation will be given to the respective families. For example, if the term policy has a cover of Rs 25 lakh along with Rs 15 lakh rider plan, the nominee will get Rs 40 lakh if the policy holder dies in an accident. We see so many people losing lives in mishaps. At such a time, it is better to have added financial security.
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Also, the insurance companies provide an 'accidental disability benefit rider' to cover the holder of a term policy in times of severe injuries in an accident leading to temporary or permanent disability. Sometimes, a person may be unable to work for some days after a mishap. There may be permanent disability due to loss of an arm or a leg or vision. Some companies are covering all sorts of such disabilities while others compensate for only permanent disability. Then, there is the 'income benefit rider', which allows a policyholder to determine how many months his family should get income. This rider will provide additional income over and above compensation yielded by the primary term plan. This will financially strengthen a family in unforeseen circumstances.
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When one cannot do a job or business any longer, it becomes difficult to pay the premium. To overcome such an eventuality, they can take the 'waiver of premium rider'. This can be taken in addition to the disability and critical illness riders. This rider will pay other premiums when the policyholder becomes disabled or suffers from serious illnesses. At the same time, full compensation will be given to the family on the demise of the policyholder as per the main term plan.
The insurance companies give instant compensation under the 'critical illness benefit rider' once the term policyholder falls ill with cancer, kidney, or heart ailments. Such riders should be taken to cover as many diseases as possible. Extra premium should be paid in addition to these supplementary policies for the sake of increased security. We can get full financial security only with enhanced awareness and selection of the best insurance plans.
