What is an Insurance rider? Do you need to have them?!

September 14, 2020


RHI Agency Team

What is an Insurance rider? Do you need to have them?!

An insurance rider is an addition or modification made to an insurance policy to add extra benefits or extra protection. An insurance rider can be opted while you apply for an insurance policy and are a very productive means of expanding the protective features of your policy without having to apply for a different insurance policy.

These riders come at an affordable cost and make your insurance coverage wider and robust, covering all the aspects you intended.

Even though an insurance rider adds extra costs to the premium of your insurance policy, it offers better coverage and additional tax benefits as well. It can be easily added to insurance policies that cover life, autos, homes, and rental elements.

Note: Insurance riders are not replacement plants, but add benefits to your current policy with a slight increase in the premium amount.

Like an insurance policy, an insurance rider must also be bought after careful thinking. Otherwise, you might end up paying an extra premium for benefits that might not do you much good.

Benefits of Riders

A rider is a way of increasing your coverage without actually buying a new insurance policy. Apart from that, the benefits of a rider include

  • More coverage under the term insurance plan which can be of great relief in the face of a financial crisis
  • Riders are more cost-effective when compared to buying a new policy to meet your coverage demands. Also since you get to choose what type of rider you want to add to your policy it is a more comfortable option
  • Depending on the tax rules of your region you will get to enjoy tax benefits on the rider as well, which again will help you save a little more in your monthly/ yearly expenses

Along with the benefits, these riders also tag along with some terms and conditions that you must be very clear with, before opting for a rider.

If you are in America and wish to buy and Insurance policy + rider, look up for RH Insurance Agency as we have 20 years of experience in this field and provide one of the best services in the whole of America. Our agency houses about 22 different brands of Insurance companies under a single roof and hence avoids the headache of comparing quotes. More customers by offering quality services is the reason for our success, and trust among the people of the US.

Different kinds of Insurance riders

There are different types of insurance riders that can be added to your insurance policy. Among them some of the most common riders are

Family Insurance rider

Family insurance rider allows additional coverage for the members of your family mentioned in the rider policy document, for example, your spouse or children. With an increase in the premium amount, this rider will provide a death benefit to you upon the death of any of the mentioned family members. This rider is a good way to ensure the financial security of your family.

Critical illness rider

This is a rider in which the insured person is benefitted in cash upon being diagnosed by any critical illness like heart attack, cancer, kidney failure, stroke, etc. mentioned in the insurance policy document. In such an event the critical illness amount is paid in full. The premium to the rider and its benefit will be over once it is used.

According to the latest survey which was conducted in 2018, 62 percent of the critically ill people had to face financial ruins. Adding this rider can be of great comfort to such people.

Waiver of premium rider

In normal cases, the term insurance will come to a halt once the insurer stops paying his premium. But in this rider if the policyholder is injured for a certain period of time or becomes disabled, the future payments from the date of injury will be waived off, i.e. the person won’t have to pay any more premiums and will still get to enjoy the whole benefits of the insurance policy. This benefit also extends to the death of the policyholder.

Note: If a person is injured, there are certain conditions to be met for the rider to be active.

Accidental death benefit rider

This is a rider benefit that is paid if the policyholder passes away in the rider term and the cause of death is an accident. In this case, the accidental rider benefit is paid in addition to the base insurance cover.

This rider is beneficial to people who have inadequate life insurance coverage and can’t afford to buy a new policy for accidental benefits. In this way, additional financial protection is assured to the closest people of the policyholder, if an unfortunate event happens. With the US recording a large number of accidental deaths in 2019, it is quite safe to consider this rider plan.

Apart from the mentioned above riders, different insurance agencies provide a variety of insurance riders that can help you make your family’s future more financially secure without having to pay large premiums.

How can these riders be bought?

Insurance riders are sold separately to the base Insurance policy but at the same time. So you can buy the insurance policy normally and opt for a rider besides if certain demands are not met by the base insurance policy. An important thing to be noted here is that once an insurance rider is availed, it cannot be added again to the policy.

Some insurance agencies offer built-in rider plans while others offer flexible rider plans which can be customized according to the demand of the customer. To know more about the insurance rider plans offered by our insurance agency you can contact us here.

Conclusion – Insurance rider! Is it necessary to buy it?

A normal insurance policy itself offers good coverage to people. But in some cases, certain demands of people are not met by these policies, and riders are required to meet these demands. Also, riders help you add certain benefits to the same insurance policy which otherwise can only be enjoyed by buying a new insurance policy.

Summing up insurance riders are the best way to increase your insurance coverage, without having to buy a new policy and thus reducing huge amounts of premium to be paid. So if you are planning to buy an Insurance policy don’t forget to enquire about the rider plans that are available with it. Have a good day!




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