What are Riders in Insurance?
Riders are add-ons or additional benefits which you can opt for along with your current life insurance policy at affordable rates. Riders are valuable tools that help you in expanding your life insurance coverage.
What are the different life insurance riders?
- Waiver of premium: It ensures that your life insurance policy stays active even if you are unable to pay your premiums. The effect of this policy would be waiving off all future premiums but the continuation of the policy benefits.
- Critical illness*: Under this rider, you pay an extra amount to get yourself covered in case you are diagnosed with any of the critical ailments mentioned in the policy document. Acting like an income replacement plan, the amount received under the rider can be used to meet both medical and household expenses. Though the critical illnesses* covered under the policy may vary from one insurer to another, some ailments like cancer, heart attack, brain tumour, etc.; are covered under the rider.
- Accidental death rider+: All life insurance policies cover accidental death. However, when you buy an accidental death rider+, the insurer pays double the sum assured to your nominee in case you die in an accident.
- Permanent & partial disability++: It is helpful in case you become temporarily or permanently disabled due to an accident. In most cases, the insurer pays a certain sum assured for the next five or ten years. Also, all future premiums on the main insurance policy are waived off by the insurance company.
- Income benefit rider: It offers a regular source of income to the family in case of the demise or disability of the policyholder.
Benefits of riders
Riders are an excellent solution to increase your insurance coverage without buying a new policy. Here are some of the key benefits of riders:
- Extra coverage: By attaching a rider to the main insurance policy, you can enjoy comprehensive coverage. For instance, a critical illness* rider pays a lump sum amount which can be used to deal with household expenses, loan EMIs and other financial liabilities apart from medical expenses.
- Affordability: Buying a rider is much more affordable than buying a separate insurance policy. Further, there are various types of riders which one can choose as per their needs. In this way, it becomes easy to cover oneself at an affordable cost.
- Flexibility: You can add a rider to any of your insurance policies - term, ULIP, endowment, whole life— and customise your policy as per your needs.
- Tax# benefits: Riders are additions to the life insurance policy. Therefore, payments toward riders also enjoy tax# benefits as per the prevailing tax rules.
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The riders mentioned above are offered under our product ICICI Pru iProtect Smart. Please note that Life Insurance riders are not the same across the industry.
* Accelerated Critical Illness Benefit (ACI Benefit) is optional and available under Life & Health and All in One option. This benefit is payable, on the first occurrence of any of the 34 critical illnesses covered. Medical documents confirming the diagnosis of critical illness need to be submitted. The benefit is payable only on the fulfilment of the definition of the diagnosed critical illness. The ACI Benefit is accelerated and not an additional benefit, which means the policy will continue with the Death Benefit reduced by the extent of the ACI Benefit paid. The future premiums payable under the policy will reduce proportionately. If ACI Benefit paid is equal to the Death Benefit, the policy will terminate on payment of the ACI Benefit. To know more in detail about the ACI Benefit and terms & conditions governing it, kindly refer to the sales brochure. ACI Benefit term would be equal to policy term or 30 years or (75-Age at entry), whichever is lower.
+ Accidental Death Benefit is up to ₹ 2 Crore. Accidental Death Benefit is available in Life Plus and All in One option under ICICI Pru iProtect Smart. In case of death due to an accident, Accidental Death Benefit will be paid out in addition to Death Benefit. Accidental Death Benefit is only available for the policy term or till the age of 80 years, whichever is lower.
++ On the diagnosis of Permanent Disability (PD) due to an accident, the future premiums under your policy for all benefits are waived. To know more in detail about the definitions and terms & conditions applicable for permanent disability due to an accident, kindly refer to the sales brochure of ICICI Pru iProtect Smart.
# Tax benefits under the policy are subject to conditions under Sections 80C, 10(10D),115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on the above.
^ Life Cover is the benefit payable on death of the life assured during the policy term.
To know about the add-on benefits of our term plan ICICI Pru iProtect Smart, click here. (UIN: 105N151V06)