Life insurance add-ons are typically offered by the insurance companies that provide additional coverage to your life insurance policies. However, some people might choose to purchase them because they provide protection in case the insured person dies before their policy expires.
There are several types of life insurance add-ons, every life insurance rider has different purposes and offers different benefits. Some commonly used life insurance add-ons are
The waiver of premium on critical illness is an add-on cover in life insurance that is included in the group insurance policy. It provides coverage for the insured individual in case the person falls sick with a critical illness. Waiver of premium on critical illness is very beneficial for those who have been diagnosed with a critical illness and also for their families.
The early claim on terminal illness in a life insurance policy that pays out to beneficiaries if the insured person dies within a specified period. If you have been diagnosed with a terminal illness and your life expectancy is less than 12 months, then you can claim this benefit. Its most often purchased by people who are terminally ill or those who have a life expectancy of less than one year.
The accidental death benefit rider provides additional coverage to the policyholder in case of the death of the policyholder due to accidental means. In most cases, accidents may not result in the on-the-spot death of the life assured, in such cases; the insurance company provides time duration after the accident occurs to provide the given cover. A total of 100% accidental death benefit sum assured would be paid to the nominee on the death of the policyholder in addition to the base death benefit sum assured mentioned under the policy.
The waiver of premium on accidental disability is an add-on cover in the life insurance policy which provides for the waiver of premium that waives off the premium payments by the insured if the policyholder suffers from an accidental injury. The waiver of premium on additional disability is available on payment of additional premium to the insurance company.
An accidental disability add-on is one of the best life insurance riders that provides coverage if an individual becomes disabled or injured and cannot work. It may also provide benefits for individuals who are not disabled but suffer from illnesses, injuries, or other unforeseen events.
Critical illness add-on is the most preferred rider because critical illness rider provides claim in the vent of policyholder contracting critical illness such as Cancer, Heart diseases, tumors, organ failure, etc. Critical illnesses are listed in every insurance company’s terms and conditions before buying this rider it is advised to check the list to make sure if you have been diagnosed with any critical illness is mentioned in the list.
Accidental Total and permanent disability is an add-on cover in life insurance that provides a sum assured by the insurance company to the policyholder in case of accidental total and permanent disability. The sum assured to the provided under this additional rider would be separate from that of the base death benefit sum assured.
HospiCare Benefit rider is one of the life insurance riders that can be very helpful in case of sudden hospitalization. Hospital Cash Benefit rider provides additional coverage and increases the power of coverage of the base policy. In a Hospital cash rider, if the insured person has to be admitted to the hospital for treatment then a fixed amount of rider benefit will be paid to the policyholder depending on the daily expense of the hospitalization.