- The policyholder has been rendered totally incapable of being employed or engaged in any work or occupation for remuneration or profit.
- The policyholder has suffered total and permanent loss of both hands, both feet, both eyes, or a combination of any two.
Term Insurance Riders: What Are They, and How They Can Benefit You?
Published: Monday, 11 November 2019 0:00 AM | By Maxabout News | 394 Views
Kaushik wanted to purchase a term life insurance policy to protect his family from any unfortunate eventuality. But he also wanted to have a source of income in the case of an ill-fated occurrence like suffering from a debilitating disability or being diagnosed with a critical illness. Kaushik then consulted his friend Mohan, a financial consultant, who told the former that term life insurance policies could also be supplemented with riders, which would then provide added benefits, including those for total and permanent disability and critical illness.
Understanding Term Insurance Plans and Rider Benefits: Term insurance plans provide an assured sum of money, as per the terms of the policy, to the family of the policyholder in case of the individual’s death during the term of the policy. A term insurance rider is an amendment, or additional clause to the policy, which provides additional benefits to the policyholder, in addition to the death benefit. A policyholder can avail the following riders with a term insurance policy:
Critical Illness: Here, the policyholder receives a lump sum payment from the insurance company in the case of being diagnosed with a critical illness. Critical illness can encompass a wide variety of debilitating diseases like kidney failure, stroke, heart attack, cancer, coronary artery bypass surgery and a major organ transplant. Any policyholder wishing to avail this term insurance rider must read the policy document carefully as there are exclusions like the illness occurring because of any pre-existing medical condition which the policyholder was aware of, or an illness for which the symptoms had manifested prior to the inception of the policy.
Accidental Total and Permanent Disability: This term insurance rider provides a certain percentage of the sum assured over a period of time, in the unfortunate case of the policyholder suffering total and permanent disability. This can provide a fixed income to the policyholder in the case of a debilitating disability. Any policyholder is usually regarded as totally and permanently disabled in the case of the following situations:
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