Insurance
•01 min read
Welcome to our brand-new series, A-Z of Insurance. In this series, we will venture into the world of insurance to breakdown insurance jargon for you, so you’re empowered to make informed decisions about your financial security.
Insurance plans come in many forms, each offering a different type and scope of coverage. For instance, term insurance covers only life risks and provides financial protection to your loved ones. ULIPs offer market-linked returns as well as life insurance coverage. Health insurance covers your medical bills. And so on.
You can pick and customise your chosen insurance plan in accordance with your needs. You can choose the cover amount, the premium payment duration, how often you want to pay the premium, the policy term, and more. One other way of customising your policy is by adding riders to it.
Let’s see what riders are.
Riders are a great way to expand your base policy’s coverage and get extra protection against risks that aren’t typically covered by it.
For instance, if you own a health insurance plan, you can get an accidental death rider with it to ensure protection for your family in case of an unfortunate event. On the other hand, if you own a life insurance plan, you can get a hospital cash rider to take care of daily expenses like food and more.
How you customise your plan and pick riders depend on your personal needs.
Adding a rider to your base plan is a very easy process. All you need to do is pick the rider you need and pay the required fee for it. That’s it! No documentation or additional procedures.
A rider is an add-on cover that expands the coverage of your base policy. It can be bought at a small extra cost to make your policy more suited to your requirements. It’s like adding your choice of toppings to pizza to make it tastier!
Insurance plans come with volley of riders and some of them include:
Accidental death benefit rider:
Provides extra life coverage in case of an accidental death, above the insurance plan’s payout (if any).
Hospital cash rider:
Gives you a daily cash amount if you get hospitalised, to help you with miscellaneous expenses like food, travel, etc.
Critical care rider:
Offers a payout if you’re diagnosed with a serious illness like cancer, heart disease, etc. This is to help pay for medicines, consultations, tests, and more.
Room rent waiver:
Negates any room rent limit present in health insurance plans, letting you pick a room of your choice for hospitalisation.
Waiting period modification:
Removes or reduces the waiting periods associated with the health insurance plan.
Please note that the availability of riders and their pricing will depend on the insurance plan you choose.
