Add-on benefits can significantly improve the effectiveness of your term plan. Read this post to know the various add-ons you can include in your term insurance plan and their benefits.
While the emotional pain of losing a family member is immeasurable, a term insurance plan can at least help get the family back on its feet financially. So, it’s crucial to take adequate term insurance coverage, especially when you have long-term financial goals to fulfil.
However, sometimes a term plan on its own may not be enough to provide enough financial stability to the family of a deceased policyholder. Therefore, it’s vital to consider including add-on benefits to the base plan to improve the scope of coverage.
What Are Add-Ons?
Also known as optional riders, add-ons are additional features that can be added to a term life insurance plan to enhance its coverage. These benefits can offer more comprehensive protection to policyholders and their families in case of unfortunate events.
Important Add-Ons to Consider While Purchasing a Term Plan
● Permanent Disability Rider
Paying insurance premiums may become a financial burden if the policyholder becomes disabled and unable to work. In such a situation, the permanent disability rider can come to the rescue of the affected person by providing a lump sum amount as compensation.
The compensation amount can depend on various factors, such as the premium amount, the severity of the disability as determined by a medical professional, etc. The insured person can use this rider to cover medical expenses, loss of income, and other related expenses.
● Accidental Death Benefit
In the unfortunate event of accidental death, the financial impact on loved ones can be devastating. So, an accidental death benefit add-on can be essential to your basic term insurance plan. This benefit provides an additional pay-out to the insured person’s beneficiaries in the event of the policyholder’s accidental death. The additional financial support can be of immense help during difficult times.
● Critical Illness Rider
This add-on feature can provide additional financial protection if the policyholder is diagnosed with a critical illness, such as cancer, heart attack, stroke, kidney failure, etc. A critical illness rider can provide a lump sum if the insured person is diagnosed with any critical illnesses specified in the policy document. Thus, a critical illness rider can take care of your indirect expenses so that you can focus on your treatment and recovery.
However, it’s important to carefully review the rider’s details before adding it to your term life insurance policy. For instance, know the waiting period of the critical illness rider, as you can’t claim the benefits before the completion of the waiting period.
No one can predict what’s on hold for them in the future. So, it’s best to leave nothing to chance and prepare adequately for any unforeseen circumstances. Therefore, it’s better not to rely solely on your base term plan. Instead, make your term plan stronger by including the add-ons discussed above.
