Term Insurance Riders Explained - Add-on Covers That Strengthen Your Plan

A basic term plan covers death - but real life can throw curveballs beyond that.

That's where riders, or add-on covers, come in. They enhance your base policy, providing extra protection against events like critical illness, accident, or disability - at a minimal extra cost.

For a few hundred rupees a year, you can turn your regular term plan into a comprehensive life protection plan.

This guide breaks down every important term insurance rider, what it covers, how much it costs, and when it makes sense to include it.

Riders are among the most underused yet most valuable features of a good term plan.

What Are Term Insurance Riders?

Riders are optional add-ons you can attach to your base term plan for added benefits. They offer financial protection for specific risks like accident, illness, or loss of income.

Add them when you buy or renew your policy.
Small cost, big impact - typically 5-10% of the base premium.

Top Term Insurance Riders (Explained)

1. Critical Illness Rider (CI Rider)

Covers: 30-40 listed major illnesses such as cancer, heart attack, kidney failure, paralysis, or stroke.
Benefit: One-time lump-sum payout upon diagnosis (even if you survive).
Example: If diagnosed with cancer, you get ₹10-25 lakh immediately - no need to wait for claim maturity.
Best For: Riders aged 25-50 with family medical history.

2. Accidental Death Benefit Rider (ADB Rider)

Covers: Extra payout in case of death due to accident.
Benefit: Family gets base sum assured + additional accident rider benefit (usually equal to or higher than base cover).
Example: Base cover ₹1 Cr + ADB ₹50L = ₹1.5 Cr total payout if death is accident-related.
Best For: Frequent travelers, bikers, and people commuting long distances daily.

3. Waiver Of Premium Rider (WOP Rider)

Covers: Future premiums waived if you suffer from disability or critical illness.
Benefit: Policy remains active even if you can't pay.
Example: If you lose income due to disability, insurer pays all future premiums - coverage continues.
Best For: Primary earners or single-income families.

4. Income Benefit Rider

Covers: Provides monthly income to nominee for fixed years after death.
Benefit: Ensures family gets regular financial support instead of one lump sum.
Example: ₹1 Cr cover + ₹50,000/month income for 10 years.
Best For: Families needing consistent income for expenses like EMIs, rent, or education.

5. Terminal Illness Rider

Covers: Pays part of the sum assured (often 50%) if diagnosed with a terminal illness (like late-stage cancer).
Benefit: Helps manage high treatment costs before death.
Best For: High medical risk or those with family history of chronic illness.

6. Accidental Disability Rider

Covers: Permanent or partial disability due to accident.
Benefit: Pays a percentage of the cover amount depending on disability severity.
Example: Loss of one limb may pay 50%, full disability pays 100%.
Best For: Outdoor workers, delivery riders, or anyone frequently on the road.

Cost Comparison (Typical Annual Add-On Costs)

Rider	Cost (₹/year per ₹1 Cr SA)	Added Benefit
Critical Illness	₹500-₹1,000	Lump sum for 30+ illnesses
Accidental Death Benefit	₹300-₹800	100% extra payout
Waiver Of Premium	₹150-₹300	Premiums waived on disability/CI
Income Benefit	₹200-₹500	Monthly income to family
Terminal Illness	₹100-₹200	Advance payout pre-death
Accidental Disability	₹250-₹600	Lump sum or graded payout

How To Add Riders

1Select your base term plan on PolicyBachat.
2Choose riders under the "Add-Ons" section before payment.
3Review premium change instantly.
4Pay and download policy - all riders listed clearly on schedule.
5Renew yearly to keep rider benefits active.

When To Buy Riders

When your family depends on one income.
If you have EMIs or long-term financial obligations.
If you work in high-risk professions or travel often.
During younger age - riders are cheaper and easier to get approved.

Rider Selection Tips

Don't overbuy - pick only relevant riders.
Always check rider coverage list (especially for CI).
Renew all riders along with main policy.
Compare riders between insurers - benefits vary widely.
Avoid duplication if you already have standalone health or accident cover.

Local Insights

Most popular rider combo: CI + ADB + WOP.
Avg. extra premium for rider bundle: ₹1,200.
Top insurers for flexible riders: HDFC Life, ICICI Prudential, Max Life.
% of customers adding riders: 18%.

Frequently Asked Questions

What Are Riders In Term Insurance?

Riders are optional add-on covers that enhance your base policy’s protection for specific risks like critical illness or accident.

Are Riders Mandatory?

No, they’re optional - but highly recommended if you’re the main earning member.

Can I Add Riders Later?

Usually yes, during renewal or at the next policy anniversary.

Do Riders Increase Premium A Lot?

No, typically 5-10% extra - minimal compared to added protection.

Are Rider Benefits Taxable?

Payouts under riders are generally tax-free under Section 10(10D) if conditions are met.

Can I Claim Both Base Policy And Rider Benefit?

Yes. For example, if death is due to accident, both base sum assured + ADB rider are paid.

Do Riders Have Separate Terms?

Usually match the main policy term, but confirm in your policy document.

Does Critical Illness Rider Cover All Diseases?

No, only listed illnesses (30-40). Always read the list before purchase.

Is Medical Test Required For Riders?

Sometimes, especially for CI or ADB if coverage exceeds a threshold.

Can I Remove Riders Later?

Yes, at renewal or by request to insurer.

What Is The Difference Between ADB And Accidental Disability Rider?

ADB = extra payout on accidental death; Disability Rider = payout if you survive but are disabled.

Can I Add Riders To Group Term Insurance?

Usually not - group policies have fixed benefits. Buy an individual plan to customize.

Are Riders Cheaper In Online Policies?

Yes, same as main policy - lower distribution costs mean better pricing.

What Happens To Rider Benefits If The Main Policy Lapses?

They automatically lapse too; renew the main policy to keep them active.

Which Riders Offer The Best Overall Protection?

Critical Illness, Accidental Death, and Waiver of Premium - cover the most common financial risks.

Customer Reviews

“Critical Illness rider saved my savings when diagnosed last year.”

Ravi Shankar, Delhi

“Got all riders added online in 2 minutes - super easy.”

Meenakshi Varma, Pune

“CI + ADB combo gave full peace of mind.”

Ajay Thomas, Kochi

“Waiver of Premium is a must - never thought it was so cheap.”

Sneha Patil, Mumbai

“Perfect explanation of each rider - now I know what I needed.”

Karan Bedi, Bengaluru

“PolicyBachat clearly showed cost difference with riders - helpful tool.”

Anita Ghosh, Hyderabad

Term Insurance Riders Explained - Add-On Covers That Strengthen Your Plan