Financial planning for family

Top 3 life insurance riders

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A rider is an add-on that you purchase to enhance your cover. A rider is generally bought at the time of buying the policy. If not, it can also be added to your policy later on during the policy anniversary date. The premium for each rider is paid individually, but added to the total policy premium. The top 3 riders are:

  1. Accidental Total & Permanent Disability (ATPD)

This rider provides you with a lump sum to cater to your immediate expenses in case your income earning capacity is hindered due to an accidental disability (total & permanent). This means that it gives you a fixed sum of money in case you meet with a disability and are unable to carry on your regular activities like going to work or earning income for the family etc. Even if you own a health insurance plan, this rider can help you with the post-hospitalization expenses like rehabilitation from the accident. A must-have rider so that you are not left stranded without money when you meet with an accident that takes away your freedom.

  1. Accidental Death Benefit (ADB)

This rider provides for additional financial security in case any death occurs due to accident. Also, the benefit is payable in lumpsum. So, apart from the Sum Assured, your family gets an additional lumpsum if you meet with an untimely demise due to an accident. With this rider, you can give your family added protection and financial support.

  1. Waiver of Premium (WOP)

This rider provides you protection in case of critical illness or accidental total and permanent disability. In the case you meet with an accident that robs you of the capability to work and earn income, you may not be able to pay the premiums regularly. If you have this rider, you can opt to continue with the policy without having to pay premiums. Your future premiums are waived off and the policy remains in force till the end of the policy term. A very important rider to ensure that you continue to give your family financial protection even though you may not be able to pay the premiums.

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