Ways to Enhance Your Term Insurance Coverage with Riders

Our finances need nurturing so that they sustain us in the long run. Taking care of ageing parents, a spouse, and children, or any other dependents are all responsibilities that require healthy financial wellbeing. In this scenario, term insurance acts as a financial safety net that helps you take care of yourself and your loved ones. A term plan will reduce your stress in difficult times, offer you peace of mind, and will help you leave behind a monetary legacy.

To find the best term insurance plan, it is important to identify your financial needs and get adequate insurance cover. Free tools such as a term insurance calculator can help you calculate your premium and coverage needed. For finding the best term plan, it is important to disclose all the relevant information to your insurance advisor without hiding details such as smoking habits to lower the premium cost. It is also imperative that you inform them about all your existing policies before purchasing a term policy.

While it is imperative to carefully gauge and select the term plan coverage, it is possible to further enhance your term insurance cover with riders. Before we explain how let us first see what a term plan means.

What is Term Insurance?

When you start to look for the , you will come across a plethora of options that might be confusing. However, a term plan is among the easiest to understand.  

A term policy insurance is one of the most sensible investments in your financial portfolio. Not only does it provide financial aid to your family, but the best term plan will help them achieve their future goals. A term plan protects for a specified period. If the policyholder dies during this term, a death benefit is provided to the beneficiary. You can calculate the premium and insurance coverage needed by using online tools such as a term insurance calculator by adding your age, financial obligations, and annual income.

Basic term insurance can be strengthened with an insurance rider. An insurance rider is an add-on cover to the basic policy that provides additional benefits. 

How do Term Insurance Riders Enhance Coverage?

Riders can transform and modify a traditional term policy into the best term insurance plan for you. Insurance riders protect against additional risks, and so they have to be selected carefully by analysing your needs. An insurance rider allows you to customise your policy at an extra cost to address specific requirements. To find the best term insurance plan in India, it is important to consider the benefits offered by different plans along with the riders.      

Edelweiss Tokio Life Insurance offers a host of insurance riders with their term insurance plans. Following are some of the term insurance riders that enhance the coverage of your insurance plan:

  • Accidental Death Benefit Rider:

As the name suggests, an accidental death benefit insurance rider pays an additional sum assured if the insurer passes away due to an accident. If the cause of death is not an accident, only the basic sum assured is still paid to the beneficiary.

For example, if the policyholder has taken term insurance for ₹60 lakhs along with an accidental death benefit rider, it will ensure an additional sum of ₹20 lakhs is provided if the cause of death is an accident. However, if the death occurs due to some other reason, the beneficiary would still receive ₹60 lakhs.

The Edelweiss Tokio Life Accidental Death Benefit Rider offers you the following features:

  1. Entry Age – 18 years to 65 years of age
  2. Policy Tenure – 5 years to 52 years
  3. Maximum Maturity Age – 70 years
  4. Premium Payment Modes – Limited Pay, Regular Pay and Single Pay
  • Accidental Total and Permanent Disability Rider:

If the policyholder meets with an accident and is rendered permanently disabled, the accidental disability benefit rider comes in force. This rider can act as an income replacement and pays the policyholder a certain percentage of the sum assured regularly. The term could range from five to ten years, depending on the policy. However, it is important to note that this rider comes in force only if the disability is caused due to an accident.

The Edelweiss Tokio Life Accidental Total and Permanent Disability Rider offers the following features:

  1. The total rider premium should not be more than 30% of the base insurance policy premium
  2. Entry Age – 18 years to 65 years of age
  3. Policy Tenure – 5 years to 52 years
  4. Maximum Maturity Age – 70 years
  5. Premium Payment Modes – Limited Pay, Regular Pay and Single Pay
  • Critical Illness Benefit Rider:

With a critical illness benefit rider, a lump sum amount is paid to the policyholder upon diagnosis of a critical illness.

The critical illness rider by Edelweiss Tokio term insurance covers 12 critical illnesses and provides the patient with the entire sum assured for the rider after 30 days of diagnosis.

The Edelweiss Tokio Critical Illness Benefit Rider includes:

  1. Open Chest CABG
  2. Cancer of Specified Severity
  3. Coma of Specified Severity
  4. Open Heart Replacement
  5. Myocardial Infarction of Specified Severity
  6. Repair of Heart Valves
  7. Third-Degree Burns
  8. Kidney Failure with Regular Dialysis
  9. Stroke with Permanent Symptoms
  10. Major Organ Transplant
  11. Bone Marrow Transplant
  12. Surgery of Aorta
  13. Permanent Paralysis of Limbs and Blindness

Additionally, with this rider, if the policyholder is unable to pay future premiums owing to income loss or disability, the premiums are waived off. The greatest benefit is that despite the inability to pay premiums, the term policy remains active.

  • Hospital Cash Benefit:

When a major illness strikes, the financial well-being of a family takes a serious hit. Medical expenses are rising exponentially, and this demands for a health-based cover that takes care of any costs of treatment, especially when it comes to critical illnesses.

The Edelweiss Tokio Hospital Cash Benefit Rider takes care of the medical expenses during your recovery and rehabilitation. The key features of this plan are:

  1. The plan pays out minimum Rs 1000 and a maximum of Rs 6000 every day of your hospitalisation, which is not dependent on the actual hospital bills.
  2. Additionally, you get 1% of the total Sum Assured for every day spent in the ICU
  3. Entry Age – 18 years to 65 years of age
  4. Policy Duration – 5 to 52 years
  5. Minimum Sum Assured – Rs 1,00,000 and Maximum Sum Assured Rs 6,00,000

Zindagi Unlimited with Edelweiss Tokio Life Zindagi Plus term insurance plan

The Edelweiss Tokio life insurance term plan – Zindagi Plus comes with a choice of four riders:

  • Accidental death
  • Accidental total and permanent disability
  • Critical illness
  • Hospital cash benefit

Further, you also get to opt for Waiver of Premium Benefit and Income Benefit while buying the plan.

The hospital cash benefit rider for Edelweiss Tokio term plan is an add-on health cover and looks after the hospitalisation expenses upon diagnosis of a critical illness.

Edelweiss Tokio term insurance offers wholesome protection and is designed with the consideration of contemporary financial requirements. To know more, get in touch with us today!

Summing Up

Before adding riders to your term insurance, it is important to understand them in detail, along with their associated benefits, inclusions and exclusions, and other relevant features. The best term insurance plan is one that provides for your primary responsibilities and equips you with additional strength to fight the unpleasant uncertainties of life. 

Swati Tumar – Travel & Finance Writer
Swati is a Writer in the day and an illustrator at night. Among her interests, she is quite fond of art and all things creative. She often indulges herself in creating doodles, illustrations, and other forms of content. She identifies herself as an avid traveler and shameless foodie.

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