Life Insurances274 views
When it comes to life insurance policies, it would not be wrong to say that riders play a pivotal role. Yes, a policy rider allows you to do the modification in your existing insurance policy so as to provide with an additional coverage. In majority of cases, it has been observed that riders give additional protection against the risk. Yes, there is no denying on the fact that if you select the riders carefully, they can add great value to your life cover. Well, in easy language, a rider is actually an added benefit that you can opt for along with your base insurance policy so as to avail the great benefits.
Moreover, being available at extra cost, it would not be wrong to say that a rider will allow you to customize your policy so that it can fulfill all your requirements. Actually, the basic purpose of a rider is to provide you more than what your basic policy has. Some common examples of insurance riders are: personal accident, critical illness and permanent disability rider.
Factors to Consider
It is important for you to know that riders are available at a relatively cheaper cost as compared to the basic policy. Yes, generally they cost 5%-10% of the basic policy, and it would be great if you opt for a rider at the time of inception. However, the earlier you take the action, the more chances for you to get a cheaper rider. However, usually life insurance companies do not impose restrictions on the number of riders which you can opt for. Moreover, it has been specified by the insurance regulator that the life insurance premium that you are going to pay on a rider now cannot exceed 30% of the premium that you pay for your base insurance policy.
Which one to choose : A Stand Alone Policy or A Rider?
Well, you may come across many insurance covers like critical illness and personal accident as both are a standalone policy or a rider. And, this thing may increase your confusion as whether to opt for standalone policy or to go with a rider. In fact, you should take a note of the fact that a rider will always prove less expensive as compared to a standalone insurance policy. If you are on the hunt of a specific protection for a limited duration of time, there is no denying on the fact that a rider is surely an ideal choice. To be very honest, actually the choice of your rider should suit your needs. All you need to do is just evaluate your lifestyle, job and present circumstances before making this big, final decision.