Customize your health insurance policy with accidental & disability riders

An insurance policy is a way to safeguard your family financially, in case of an unforeseen death, disease or accident. There is no right age for one to by insurance; the younger you start the better it is. Every person you have steady source of income, a family to take care of and a future to plan for should create an insurance package for themselves and their families. The four basic types of insurance policies that one needs to have in that insurance package are, a life insurance policy, in case of the death of the policyholder this policy will help your family by giving them monetary support. A health insurance policy, which will help take care of any medical bills or treatments, which can be very expensive. Personal accident policies that will help supplement the income of the family in case the policyholder meets with an accident. And a critical illness policy that will help take care of the treatment costs for illnesses like cancer, heart diseases and major organ failure.

Insurance riders are a great way to customize your insurance policy. A rider is an insurance add-on that provides the policyholder with additional benefits apart from those offered by the term policy. It is used to enhance the cover of the policy. You can add multiple riders to a health insurance or life insurance policy. But the two most important riders are the Accidental Death Rider and the Permanent Disability Rider. There are three other riders too, they are, the Critical Illness Rider, the Premium Waiver Rider and the Income Benefit Rider.

These riders together help you maximize the benefit of your insurance policy. Here’s what you need to know about the two most important insurance riders and how they work.

1

.      Accidental Death Rider: If you purchase this rider and the policy holder dies due to an accident, his or her nominee will receive and addition amount of money above the sum that has been assured to them in their term policy. For example, if your term policy assures you Rs.50 lacs and you’ve purchase an accidental death rider, your nominee will receive a sum of Rs.60 lacs in case you die in an accident.

2

.      Accidental Disability Rider:  If an accident leaves you partially or permanently disabled, then this accidental disability rider helps to substitute your income which you’ll lose due to your disability. With this rider, you get a percentage of the assured sum for a fixed period (five or ten years). Usually, this rider is offered along with the accidental death rider.

A rider can be the difference between financial disaster and stability, buy paying a little extra you can save your family a lot of trouble.