Life Insurance Riders: Meaning, Types and Advantages


Life can be very unpredictable and strike at the most unexpected times. Although we are always prepared for the most uncertain things, there can be tough times. You always need a safeguard against such uncertainties and everything dear to you. In such cases, the best thing to do is to be a life insurance rider.

This article will share the meaning, types, and benefits of life insurance riders.

The Meaning of Life Insurance Rider

Life insurance riders are the additional coverage that can be opted for at the renewal or issuance of the policy. Such other coverages come with different premiums and extensive coverage, which is the same as the tenure of the base policy. Life insurance riders are pocket-friendly, affordable, and help increase the base coverage of the life insurance policy. There are different types of insurance riders; every rider has a different purpose and offers various benefits.

How to Choose Life Insurance Riders?

If you intend to purchase a perfect life insurance rider, keep the following points in mind to make an informed decision:

Requirements: Life insurance policies include a wide range of optional coverages or riders. Based on its characteristics, each rider serves a specific purpose. In order to have the appropriate cover at the end, it is critical to identify the rider’s purpose before making a purchase. Before you buy, keep your specific goals in mind and see which of the riders meets them.

Affordability: It is recommended that you choose a rider that fits within your budget, as you will be required to pay an additional premium in exchange for it. Because purchasing additional coverage in the form of a rider will increase your total premium, it is critical that you make an informed decision while keeping affordability in mind.

Terms and Conditions: Carefully read all of the policy’s terms and conditions. As you read through the policy documents, you will notice what the rider includes and what it does not.

Types of Life Insurance Riders 

Here are some of the riders that can be included in your life insurance policy, such as:

Accidental Death Benefit 

The Accidental Death Benefit Rider provides the nominee with a sum assured as well as rider benefits in the event of the accidental death of the life assured. Most accidents do not result in the death of the life assured on the spot; in such cases, the insurance company provides a time period after the accident occurs to provide the given coverage.

Critical illness rider 

If you include a critical illness rider with your insurance plan, the policy will pay a lump sum amount when you’re diagnosed with an unforeseen illness, provided this illness is covered under the plan. Some of the diseases covered by this include renal failure, heart attacks, cancer, and major organ transplants. Other than these, paralysis, attacks, and strokes are also included.

Permanent Disability Rider

Permanent Disability Rider pays the rider benefit to the life assured if he or she suffers a total permanent disability as a result of an accident, rendering the life assured unable to earn a living and pay the required premiums. This rider is usually included with the Accidental Death Benefit rider.

Income benefit 

The Income Benefit Rider provides a predetermined number of monthly instalments equal to the monthly income of the life assured to the life assured’s family members in the event of the life assured’s untimely death during the policy term.

Waiver of Premium 

A Waiver of Premium Rider waives all future payable premiums if the life assured suffers disability as a result of an accident, rendering them unable to pay future premiums on their life insurance policy. This rider allows the life assured to use the policy benefit even after receiving the premium waiver rider benefit.

Advantages of Life Insurance Riders

Extra coverage: There is extra coverage which can be extra helpful during times of financial crisis.

Economical: Buying a life insurance rider is more economical than purchasing a separate insurance policy.

Customize: The life insurance riders make the insurance policies much more economical. 

Affordability: When you purchase a rider, it can be much more economical than when you buy a life insurance plan. There are several other types of riders that you can choose from. This will make it easier to provide coverage at low rates of premium.


It is always suggested that you know what your insurer offers to get the most out of your life insurance policy. Also, you must analyze and research all life insurance riders that can successfully meet your future needs.

It is always best to know what the riders offer so that you can weigh the options well and choose the one with the most cost-effective added benefits.

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