Term Insurance Riders In India

According to the Insurance Regulatory and Development Authority of India, insurance companies can offer a variety of riders or add-on(s) to provide better coverage to the policyholders. Insurance buyers can select from various riders based on their needs and preferences. These are offered to protect the dependent's (sum assured nominee) financial interests. Before purchasing a term insurance policy, you must know the rider's term and condition, entry age, sum assured, and other aspects that influence the coverage. The insurance company will not provide the rider if you are 65 years old or above. Also, several insurance companies offer term riders at the time of buying the policy only. Adding a new rider at the policy renewal time might not be possible in some cases.

Riders For Term Insurance

Term insurance riders are options available at the time of purchase of the policy. The riders offer additional security and coverage by paying above-the-margin premium rate. Any term insurance rider should be considered as an addition to the existing term insurance policy. Riders are available for various objectives and can be added to your base policy to expand the perks of your term insurance coverage.

Check Out Several Insurance Companies Offering Term Insurance Riders Benefits On SMC.

Types Of Term Insurance Riders 2022

Below are the types of riders available in India:

Accidental Death Riders

This rider is ideal for people who want to leave a substantial sum of money for their families in the case of an unexpected death. Because accidental death might result in high medical costs and unpaid financial obligations. Even if the policyholder does not select this rider, the base sum assured applicable to term insurance will be paid.

Premium Waiver Riders

If you are unable to pay your insurance premiums for a certain length of time, your policy will lapse. Non-payment of premiums can result from various circumstances, such as unemployment, temporary or permanent disability etc. The waiver of premium riders is a good way to protect your policy from getting lapsed due to non-payment of premiums due to financial disability. With this rider, you will remain insured even if you are unable to pay your premiums. All your future premiums are waived off while you continue to enjoy the policy's benefits.

Critical Illness Riders

People pay a very hefty sum when it comes to critical illness. A critical illness rider protects policyholders from high medical expenses by paying them off and ensuring that medical care is neither withheld nor neglected owing to insufficient funding. Critical illness riders generally expand medical coverage for conditions such as heart attack, stroke, cancer, kidney failure, paralysis, and a variety of other conditions. When one of the above-mentioned severe illnesses is diagnosed, the rider enables policyholders to receive a pre-determined lump-sum payment.

Income Benefit Riders

This rider provides benefits to the insured's family in the event of their untimely death. The purpose of this rider is to provide a steady stream of income to the family of the dead policyholder. Payment is usually made as a percentage of the overall sum assured, thus serving as an additional income source for dependents.

Why Do You Require A Term Insurance Rider?

Following are the reasons why you might need a term rider:


If you require more insurance coverage during the policy's early years but not for the rest of your life.


You still need some permanent coverage or a whole life policy for investment considerations, even if you don't need the larger death benefit for the rest of your life.


You might be able to enjoy tax exemption, as several insurance companies might offer tax benefits on riders as well.

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Advantages Of Term Insurance Rider

Following are the advantages of Term Insurance Riders:

A rider is a comparatively less expensive alternative than buying a separate policy.

A rider is a comparatively less expensive alternative than buying a separate policy.

It lowers the cost of the insurance policy.

It enables you to personalize your insurance coverage.

Can The Rider Be Removed Before The Terms End?

This depends on the individual insurance provider and the rider's characteristics, but the term rider can usually be cancelled before it matures. It is not generally possible to add it back once it has been deleted, so only cancel the term rider if you are confirmed that you won’t need the coverage. The cost of the rider will reduce the premium cost in case of cancellation. Normally, you can cancel the rider by approaching your insurance provider. To remove the rider, they will most likely need a signed form or a signed letter of instruction.

How To Buy A Term Riders?

Riders are purchased at the time of an insurance policy. When you buy a policy from an insurer, you can choose from a list of riders. Remember that these riders should be purchased at the same time as the standard insurance coverage. Riders cannot be purchased after the base insurance has been purchased. While some insurance firms include riders in their standard life insurance policies, others offer flexible plans that can be tailored to your specific needs.

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After reading about the aforementioned few riders, it should be evident that riders are an excellent financial instrument for helping you to plan sensibly for life's terrible and unforeseen situations. These occurrences may not occur in every person's life, but preparing for them is the greatest way to keep themselves and their family safe at all times and in every situation.

Term Insurance Rider FAQs

Insurance would be much easier for you after browsing the list below.

. The main disadvantage of a term rider is that it provides only temporary coverage.

The basic terms of an accidental death benefit rider are:

  • ● The policy must be active at the time of the accident.
  • ● Death caused after 180 days due to an accident will not be covered.
  • ● The benefit is only accessible to policyholders under the age of 65 years.
  • ● In the event of a claim, benefits equivalent to the base policy's Sum Assured, up to a maximum of 50 lakhs, will be paid.

Accidental death claims are denied if:

  • Death caused after 180 days due to an accident will not be covered
  • Suicide or self-inflicted injuries are the leading causes of death.
  • As a result of participating in aerial flights (including parachuting and skydiving)
  • When engaging with illegal intent or breaking the law in any way
  • Due to a declared or undeclared war
  • Due to civic unrest
  • As a result of participating in dangerous activities or hobbies

Well, the choice is yours. Suppose you want to secure your financial condition or do not want your policy to lapse due to non-payment of the premium (which may occur due to several reasons). In that case, you must buy a rider at the time of purchasing a policy.

Several companies offer critical illness term riders. Some of them are:

  • ● TATA AIA Life
  • ● Aegon Life
  • ● ICICI Pru life
  • ● Bajaj Allianz