Term insurance is an important financial instrument that can keep your loved ones protected against the financial hurdles in your absence. When you buy term insurance, you pay for a life cover` that offers you protection for your life during the term of the policy. In order to enhance the coverage of your plan, insurers also offer riders or add-on benefits with term insurance. These optional benefits can be bought at a small additional cost and offer additional protection, such as critical illness cover, disability cover, accidental death cover, and more.


What are Term Insurance Riders

Term insurance riders are optional add-ons to your basic term insurance policy to enhance its coverage. Riders enable you to enhance your insurance policy to match your unique requirements. You can add a rider at a marginal extra cost over the base premium.

Why do you need riders in term insurance?

Riders or add-on benefits are essential additions to your plan and offer many advantages. Here are some reasons why you need term insurance riders:

  • Term insurance riders can improve the protection of an existing plan. These add-on benefits can take care of some unforeseen circumstances that can cause considerable financial damage. They make sure that you are always covered and have a security blanket to fall back on
  • The treatment of a critical illness can impact your savings and come in the way of your day-to-day expenses and future plans. Optional benefits such as a critical illness cover can cover the costs of treating such life-threatening and extremely costly illnesses
  • In case of an unforeseen death due to an accident, add-on benefits can offer better coverage and protection, to both you and your loved ones

What are the different kinds of term insurance riders?

There are many types of add-on benefits that can be bought along with term insurance. Here are some of the most commonly available optional benefits:

Accidental death benefit

This cover offers extra financial protection in case of an unfortunate event due to an accident. The cover provided is in addition to the life cover`, which can financially protect your family and be used for their future expenses

Permanent and partial disability benefit

In case of permanent or partial disability due to an accident, this benefit offers you financial aid and protection

Critical illness benefit

This rider offers a lump sum payout on the first diagnosis of a critical illness covered under the plan without any hospital bills

Waiver of premium

In case of disability, and hence losing the ability to work or earn money, all your future premiums are cancelled under this benefit and your policy continues as before

Income benefit

With this benefit, your nominee receives a pre-fixed part of the life cover` amount as fixed income at the time of maturity. This can be used as a replacement for income

Terminal Illness Rider

This is an accelerated death rider. If diagnosed with a terminal illness, this rider offers the sum assured to the policyholder in advance. The terminal illness rider helps policyholders cover health-related expenses, loss of income and other financial needs.

Benefits of Term Insurance Rider

Term insurance riders enhance your term insurance plan's coverage by offering additional financial protection. They also offer many other benefits. Below are some of their advantages:

Enhanced Sum Assured

Riders can offer you an increased sum assured. Some policy combinations, like term insurance with an accidental death benefit rider, give you additional financial coverage. For example, if the base policy provides a ₹ 1 crore sum assured and an accidental death benefit rider is added to it, then the nominee will receive an extra ₹ 50 lakh in case of an unfortunate event of your demise due to an accident. This will enhance your overall coverage to ₹ 1.5 crore.

Protection for Family

Term insurance riders offer financial security to the family of the insured. These riders provide additional financial support to beneficiaries beyond the base policy if an unfortunate event occurs, such as an accidental death, disability or diagnosis of a critical or terminal illness.


Term insurance riders are a cost-effective way to ensure better financial security in the long run. Buying separate covers can be more expensive. Adding riders to an existing plan can be a lot more affordable.

Tax Benefits

Similar to the tax-deductible premium of a term insurance policy under Section 80C# of The Income Tax Act, 1961, riders also come with their tax benefits. You can claim deductions for the premiums paid towards the accidental death benefit rider under Section 80C# and the premiums towards the critical illness rider under Section 80D# subject to the conditions prescribed under them.

What are the optional add-on benefits available with ICICI Pru iProtect Smart Term Insurance?

With the ICICI Pru iProtect Smart Term Insurance plan, you can get a life cover` with a sum assured of up to ₹ 1 crore at an affordable premium rate$. However, apart from the sum assured, this insurance plan also provides you and your family with many optional benefits that can help you in your hour of need. For instance, your family can get up to ₹ 2 crore in case of death due to an accident^ if you have added an accidental death benefit^(optional). The disability benefit waives off all future premiums in case of total and permanent disability#. You also have the option to increase the life cover` at important milestones of your life like marriage and childbirth. Lastly, the critical illness* cover (optional) offers financial protection against 34 critical illnesses* such as heart attack, stroke, cancer, kidney diseases, and more.


The combined coverage of a term insurance policy and its riders ensures your family's financial stability. It is advised to evaluate and understand your need for riders and compare their premium before selecting the ones that can help you and your loved ones at critical times.

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` Life cover is the benefit payable on the death of the Life Assured during the policy term.

$ The premium for a term plan is dependent on factors like age, gender, Sum Assured, Policy Term, etc. Keeping all other factors constant, the premium for younger ages is lower than that of higher ages

^ Accidental Death benefit (ADB) is up to ₹ 2 crores (subject to underwriting guidelines). ADB is available in Life Plus and All in One options. In case of death due to an accident Accidental Death Benefit will be paid out in addition to Death Benefit. Accidental Death Benefit will be equal to the policy term or (80-Age at entry), whichever is lower.

# On diagnosis of Permanent Disability (PD) due to an accident, the future premiums under your policy for all benefits are waived. To know more about definitions, terms & conditions applicable for permanent disability due to accident, kindly refer sales brochure of ICICI Pru iProtect Smart.

* Accelerated Critical Illness Benefit (ACI Benefit) is optional and available under Life & Health and All in One options. This benefit is payable, on first occurrence of any of the 34 illnesses covered. Medical documents confirming diagnosis of critical illness needs to be submitted. The benefit is payable only on the fulfillment 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 ACI Benefit, terms & conditions governing it, kindly refer to sales brochure. ACI Benefit term would be equal to policy term or 30 years or (75-Age at entry), whichever is lower.

# Tax benefits are subject to conditions prescribed under Sections 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses 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.


ICICI Pru iProtect Smart UIN 105N151V06 (Non-Linked Non-Par Life Individual pure risk premium product).


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