How to Increase Coverage with Term and Life Insurance Riders

Most people opt for a life insurance policy to secure their future in case of an unfortunate event. But what if something were to happen which isn’t included in your policy? This is why you need to maximize your coverage by getting insurance riders with your insurance plan. There are several add-on riders that provide coverage from major problems like income loss, death or a major illness. Here are some of the most commonly bought rider:

Various Types of Rider Benefits

1.     Critical Illness Rider

A critical illness rider provides you with coverage from a number of major illnesses that are usually not covered under a basic insurance policy. One of the insurance companies like Kotak Life Insurance covers thirty-seven critical illnesses like cancer, brain tumor, paralysis of limbs and many more. On diagnosis of the ailment, a lump sum benefit will be given to take care of your medical expenses and other indirect costs.

2.     Accidental Death Rider

This rider extends the cover and protects you during accidental death. The benefits of this rider go over and above the coverage offered by your term insurance plans. In case of accidental death, your beneficiary will get a lump sum payout. This benefit received can be used to take care of any expense and can be used as the family prefers. Many insurance policies cover accidental death and some do not but the rider benefit provides with an extra amount to secure your family.

3.     Permanent Disability Rider

This type of rider covers you in case of an accident causing permanent disability. If you are the sole earner or contribute a considerable amount towards your family, then such an incident can cause financial instability. A regular payout is given to you over a period of time to safeguard your family from any financial crunch.

4.     Waiver of Premium Rider

Certain financial constraints can prevent you from paying your premiums on a regular basis. By opting for a waiver of premium rider, you are able to ensure that your policy is taken care of and you can continue to enjoy the benefits of your life insurance policy. With this rider, your term plan does not lapse even if you fail to pay the premiums.

5.     Income Benefit Rider

In case some unfortunate event causes you to lose your job, your family will become dependent on someone else to make ends meet. Also, your life insurance premiums will remain pending until you have secured other necessities. To avert such a situation, you can purchase an income benefit rider to secure you and your family. This rider provides a regular income to your beneficiary, for a fixed period, and takes care of your family’s needs.


By combining some of these riders with your insurance plan, you are able to avert major incidences that can cause financial stress and instability to your loved ones. Contributing some extra towards your policy can ensure maximum coverage for those uncertain circumstances.