Enhancing Your Coverage: Exploring Rider Protection Options in Life Insurance

Everyone looks for a life insurance plan that gives them the best benefits. Apart from provisions such as flexible premium payment terms, life covers, and savings options, an attractive feature of a savings plan is the rider options that it provides. A rider is a provision added to the insurance policy that gives enhanced coverage options over and above the original policy. Rider protection options differ from one plan to another and also one insurance provider to another. These options also come in various forms. Some of the common rider options are long-term care, term conversion, waiver of premiums, and exclusionary riders.  

These features of a rider option help one to customize their insurance according to what is suitable for them. In this blog, you will get an overview of the advantages of selecting a life insurance savings plan that provides the best rider protection options and how that can be beneficial. It will also detail the rider options you can make use of by availing of the Shriram Life Premier Assured Benefit Plan.

Rider Protection Options

When purchasing a life insurance savings plan, individuals have different goals that they want met. However, the pre-set policy may not always match the policyholder's goals. This is where life insurance riders play a role in providing additional coverage options and provide personalized insurance protection. The following are some common types of life insurance riders.

Long-Term Care Rider:

This type of rider, also called an LTC, is a policy that functions to provide some part of the policy’s death benefit each month to use for long-term expenses. If used, it reduces the policy’s death benefit. This option is beneficial for those who are in urgent need of money and are fine with the idea of receiving less death benefit after their death. A stand-alone LTC can save costs if the rider is unused.

Term Conversion Rider:

If an individual owns a term life insurance cover and would like to extend the policy one more time once the policy expires without use, they may not be able to avail of new coverage. In such a scenario, they can make use of the term conversion rider which extends the term of the existing life insurance and makes it permanent. This is suitable for those who want to secure coverage for their families in the future.

Premium Waiver Riders:

Once the policy has commenced, the premium for the policy is waived off due to any illness or inability to pay from the side of the policyholder. This can prove to be a helpful measure if one is unable to pay the premium amount the way they had previously planned to.

Exclusionary Riders:

For some events or specificities, rider protection options may not be available. This kind of rider policy will prompt the policyholder to consider a different policy that will be able to cover the specific needs that have been excluded from the rider coverage.

Shriram Life Premier Assured Benefit Rider Options:

There are four kinds of rider options provided in the Shriram Life Premier Assured Benefits Plan. These additional coverage options are curated to help the policyholder during critical situations in their lives and therefore make use of personalized insurance protection. These four options fall in the major rider option types detailed above and offer rider benefits.

Family Income Benefit Rider:

When the life assured meets with any accident or permanent disability,1% of the rider sum assured to them can be used as monthly payouts by the family.

• The minimum age criteria is 18 years and the maximum is 65 years; the minimum and maximum rider term is 5 years and 52 years, and the minimum and maximum sum assured is 50,000 and 50,00,000.
• There are three premium paying terms

1. Single Premium - Once
2. Regular Premium - Equal to the chosen policy term
3. Limited Premium - 5 years to 51 years

Extra Insurance Cover Rider:

If during the rider period, the life assured is met with demise, the rider sum assured is given to the nominee. This ensures that the money that has been availed does not go a waste and can be used by the family members of the policyholder.

• The minimum age to apply is 18 and the maximum is 65; the minimum and maximum rider term is 5 and 52 years and coverage provided is Rs. 50,000 up to Rs. 25 lakhs.  
• It provides flexible premium payment options, guaranteed benefits plus tax exemptions, and long-term coverage options. There is a grace period if the premium is not paid within the due date. It is 15 days for monthly premium payment frequencies and 30 days for others.  
• There are no eligibility criteria
• This rider can be availed during the time of getting the base policy or during a policy anniversary, making the plan easily available
• Rebate benefits which entail giving back a portion of the sum assured are possible in this if one chooses a high sum assured.

Accident Benefit Rider:

If the policyholder who has life insurance is met with an accident that leads to their unexpected demise or any kind of permanent disability, then they will receive 100% of the rider sum assured.

• The minimum age criteria is 18 years and the maximum is 65 years; the minimum and maximum rider term is 5 years and 52 years, and the minimum and maximum sum assured is 50,000 and 50,00,000.
• Premium payment flexibility and coverage options are all similar to the other rider options.

Critical Illness Plus Rider:

This is applicable if the policyholder is diagnosed with one of the twenty-four specified critical illnesses that include conditions such as cancer, coma, heart attack, and other critical illnesses. 100% of the rider sum assured will be given to cover those medical expenses.

Pre-existing conditions or diagnoses that were treated 48 months before the policy’s starting date are not eligible to avail of this rider. The minimum age criteria is 18 years and the maximum is 65 years; the minimum and maximum rider term is 5 years and 52 years, and the minimum and maximum sum assured is Rs 50,000 and 25,00,000.

• Flexible premium payment options with regular pay which is the same as policy term, single pay, and limited pay from 5 to 51 years. Loyalty benefits, provided all the premium amount being paid regularly will result in an increase in sum assured by 15%.
• The surrender value payable is 70% of the total premium paid.
• There is a free look period wherein, the policy can be returned to the company within 15 days of cancellation
• There is a survival period of 30 days from the date of the first confirmed diagnosis and a waiting period of 90 days from the date of acceptance of risk; during this time the critical illness benefit is not payable.

To conclude, rider protection options offer a multitude of benefits to policyholders. It helps them during times of need by letting them customize their insurance policy. This can provide a financial net and ease the mental stress of managing their finances. The additional coverage options provided in the Shriram Life Premier Assured Benefit Plan are a true savior for every need. With four options that provide benefits to the policyholder and their family, this is the right life insurance option to choose for a happy life.

For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.

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