When it comes to securing your financial future, life insurance is a powerful tool that provides peace of mind and financial protection for your loved ones. However, one aspect of life insurance that’s often confusing is a term called “riders”.
In this guide, we'll break down the mystery surrounding life insurance riders, explaining what they are and why they may be beneficial for you.
Let's start with the basics
Life insurance is a contract between you and an insurance company, where you pay regular premiums in exchange for a sum of money that is paid out in the event of death, total & permanent disability, or loss arising from any other specified situation. This financial safety net helps ensure that your loved ones are taken care of in the event of the unexpected.
Now, what on Earth are riders?
Life insurance riders are additional features or options that you can add to your basic life insurance policy to enhance its coverage. Think of riders as customisable add-ons that cater to specific needs, allowing you to tailor your policy to better suit your unique circumstances.
These are some common life insurance riders:
Benefits of Insurance Riders
Insurance riders are something that every policyholder should consider. Their benefits include:
i. Customisation: Every policyholder has their unique needs and circumstance. Riders can help tailor to them.
ii. Cost-effective: Riders are a cost-effective way to enhance existing coverage compared to purchasing entirely new policies.
iii. Flexibility: It gives you the ability to adjust your insurance coverage without the need for a complete overhaul on your policy.
iv. Specialised coverage: Riders can cover specific risks and concerns that may not be covered by standard policies. For example, the waiver of premium rider or accelerated death benefit rider.
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