A life insurance policy is a contract between a policyholder and an insurance company to provide financial protection to their family or heirs if the policyholder dies. In a life insurance policy, there are many terms and types of riders that many people may not know. Here are six types of riders in a life insurance policy that you need to know:
Self Accident Rider
Rider personal accident is additional protection that provides cash payments if the policyholder has an accident resulting in death or permanent disability. These riders usually provide larger payments if the accident occurs when the policyholder is in a public vehicle or airplane.
1. Critical Illness Rider
Critical illness riders provide cash payments if the policyholder is diagnosed with a critical illness such as cancer, heart attack or stroke. These cash payments can help policyholders cover medical and daily living expenses while recovering.
2. Health Riders
Health riders provide additional benefits such as financing for hospitalization, surgery, and routine health checks. This rider helps reduce the burden of health costs that must be borne by policyholders.
3. Education Rider
Education Rider is an additional benefit that can help pay for a child's education if the policyholder dies. This rider helps the children of policy holders to continue to get an education even though their parents are no longer present.
4. Permanent Disabled Rider
Permanent disabled riders provide cash payments if the policyholder experiences permanent disability due to an accident or illness. This rider helps policyholders deal with ongoing living expenses even though they are no longer able to work.
5. Return Premium Rider
Return premium rider provides premium refund if the policyholder is still alive at the end of the coverage period. This rider provides additional benefits for policyholders who still want to take back the money that has been paid during the coverage period.
6. Credit Insurance Rider
Rider credit insurance provides protection on credit or loans taken by policyholders. If the policyholder dies before paying off the debt, this rider will pay the remaining outstanding debt.
7. Rider Loss of Income
Loss of income riders provide cash payments if the policyholder suffers a significant loss of income due to illness or accident. This rider can help overcome the cost of living and prevent bigger financial losses.
8. Saving Riders
Rider savings provide additional benefits in the form of investments or savings that can be disbursed at the end of the coverage period. This rider helps policyholders raise funds that can be used for financial goals in the future.
9. Retired Riders
Pension riders provide additional benefits in the form of cash payments or investments that can be used to prepare for retirement in the future. This Rider helps policyholders plan their finances for retirement.
10.Choosing the right rider is important in a life insurance policy. In choosing a rider, it is important to consider personal needs and financial situation. Make sure to read and understand the details of each rider offered before selecting and adding to your life insurance policy.
In conclusion, riders in life insurance policies provide additional protection and financial benefits that can help reduce risks and financial burdens in the future. Therefore, make sure to choose the right rider and suit your financial needs.