What are Riders in an insurance policy?
The riders are meant to provide additional but optional benefits, to cover against specified risks. Depending upon the risk perception additional covers can be brought with the basic policy. These riders may cover accidental death, critical illnesses, disability etc. Riders are always attached to the basic policy and they cannot be purchased separately.
Why to buy rider with an insurance policy?
Though extra premium would be charged for each of the additional risk covers it would still be much less when compared to separate policies.
Few popular riders in life insurance policies –
1. Critical Illness Rider – Provides protection against listed critical illnesses.
2. Accident Death Rider – Benefits payable on death due to an accident.
3. Accident Death & Disability Rider – Provides protection against accident death & disability.
4. Waiver of Premium Rider (WOP) – Provides protection against death and/or total and permanent disability due to an accident