Customize Your Life Insurance Policy with Riders

Maximize insurance protection by availing cost-effective riders

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An insurance advisor overhears two young men, A and B, discussing term insurance and the benefits it offers in assuring financial protection in an unforeseen eventuality.

A: Have you heard of something called ‘riders’ in life insurance?

B: Riders? I don’t think so. Nothing comes to the mind except those who ride a two-wheeler or something.

A: Ha Ha! I don’t know why they are strongly suggesting to avail one.

Advisor: Hi! I’m sorry to interrupt but I overheard you. I am an insurance advisor and would like to enlighten you with the whole concept of riders in life insurance.

A: Sure. Please go ahead.

Advisor: Well, as you must already know, when it comes to life insurance, one size does not fit all. Riders are additional benefits that can be availed along with a life insurance plan, by paying an extra premium. These are optional benefits available along with the death benefit cover, customized to suit individual needs. With additional benefits, a rider enhances your insurance protection.

B: Well, great. So what are these different types of riders in insurance?

Advisor: There are several types of riders offered with term insurance plans. The costs, conditions, and benefits of these riders vary according to the term plan, the premium, and the insurer. While availing term insurance, it is important to check what riders your policy qualifies for.

Let me tell you about the most popular term insurance riders available in the market today - 

Accidental Death Benefit/Permanent Disability Benefit Rider

Accidents can severely disrupt your finances at any time and derail your goals. To combat this, insurance companies offer Accidental Death and Disability Benefit Rider. An additional sum assured is paid to the insured’s family if death is due to an accident. Moreover, if the insured is rendered partially or permanently disabled from an accident, then also additional cover is paid to him under this rider.

Critical Illness Rider

A critical illness rider provides an additional benefit like periodic payouts or lump sum payments, over and above the sum assured, if the policyholder is diagnosed with a specified critical illness. This pay-out received helps the family of the insured to stay financially independent pre and post-treatment. Most major illnesses such as heart attack, stroke, kidney failure, some types of cancers, major organ transplants, etc., are listed as critical illnesses in the life insurance agreement.

Max Life Insurance offers a critical illness rider covering 40 critical ailments. It pays a lump sum if the policyholder is diagnosed with any critical ailments outlined by the rider.

Waiver of Premium Rider

This rider offers benefits in the form of a waiver of all future premiums if the policyholder is unable to pay the same due to dismemberment or critical illness. A critical illness or disability may result in loss of income and inability to pay the premiums. This rider counters the same by having all future premiums waived off, and thereby, sustaining the policy.

In the absence of the rider, if the policyholder suffers the loss of income due to any reason specified in the rider agreement, and is unable to pay due to premiums as a result, the policy shall cease to be in force and no death benefit will be paid. The rider is, therefore, akin to having all your premium payments insured until policy expiry.

B: Sounds good. How do we go about availing riders along with term insurance plans?

Advisor: When you are purchasing a term plan, understand the riders that are offered with your existing insurance plan. Know the associated benefits, inclusions and exclusions, and the additional premium you’d need to pay. It is most important to assess your need for a specific rider, keeping in mind unforeseen eventualities and making an informed choice.

If you’ve purchased a plan and wish to add or change any rider, know the specifics from your insurer. Note that the term and sum assured of a rider can’t exceed more than that of the base policy and as per IRDAI rules, the premium under health riders can't be more than 100% of the base plan premium.

Term insurance riders are an important tool for financial contingency and aid you and your family in the event of an unfortunate incident. Max Life offers Comprehensive Accidental Benefit (CAB) rider, Critical Illness Rider, Waiver of Premium (WoP) rider, among the aforementioned ones. Availing these riders adds a nominal amount to your base policy giving you a host of benefits.

Rider Name

Premium Cost (Per Annum)


Comprehensive Accidental Benefit Rider

Rs. 63 per lakh sum assured

Rider sum assured paid in case of death or dismemberment due to accident.

Waiver of Premium

Minimum Rs. 2 per annum for entry at the age of 18 years with a rider term of 5 years and a base plan premium of Rs. 1000.

Waiver of all future premiums in case of critical illness, dismemberment or death.

Critical Illness


Lump-sum pay-out on the diagnosis of any critical illness outlined in the policy.

Assess your needs, explore the different riders for you, and find the right one to strengthen your life insurance coverage!

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