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What is an insurance rider?

When dealing with insurance policies, you must have heard the term rider. Now, what is an insurance rider? In simple terms, an insurance rider is a policy provision that offers added benefits or amends the terms of your Insurance policy. This article will explore the meaning of an insurance rider in life and health insurance policies and the different types of riders you can add to a policy.

What are life and health insurance riders?

Insurance riders are additional benefits offered over your existing insurance or policy, like broader coverage. Most life and health insurance riders come with add-on benefits that allow policyholders to make the most out of their policy. For instance, the term insurance rider provides a death benefit to the nominee on the insured’s death.

Different types of insurance riders

There are various types of insurance riders for life insurance policies. Some of them are listed below:

Long-term care

While many market policies ensure long-term life care, this rider also makes sure that the policyholder is allowed a monthly payment in case he/ she has to stay at a nursing home or receive home care.

Term conversion

This term insurance rider allows the policyholder to convert his/ her existing term life insurance to permanent life insurance without a medical exam. Once the term insurance expires, it can be difficult to convert or obtain another policy.

Waiver of premiums

Future premiums are waived under this rider if the policyholder somehow becomes permanently disabled or loses their income due to some injury or illness. Eligible policyholders are excused from paying the due premium until they are ready to work again.

Accidental death rider

This rider provides a payable benefit if the policyholder dies during the rider benefit term due to an accident. This payable sum is in addition to the basic sum assured. However, the premium remains fixed throughout the term of the policy.

Child term rider

This term insurance rider offers financial benefits in the event of a child’s death. Additionally, the rider can also be converted into permanent insurance after the child reaches maturity.

Different types of health insurance rider

Here are a few health insurance riders that offer increased cover for your existing policy:

Maternity cover rider

This rider ensures that your insurance covers certain expenses during childbirth. Primarily, it covers delivery expenses. The rider might also include pre or post-delivery charges. In some cases, it also covers newborn baby expenses and vaccination costs.

Critical illness rider

This health insurance rider ensures that the policyholder receives a basic lump sum of money on a valid diagnosis of a critical illness pre-specified in the policy. Most major illnesses are covered under the critical illness rider, including cancer, heart attack, paralysis, organ failure, etc.

Personal accident rider

From permanent total disablement and accidental death to temporary disablement, this health insurance rider covers all possible aftermath of an accident. In case the policy rider dies in the accident, the nominee is entitled to twice the amount of the policy.

Hospital Cash

This health insurance rider ensures a daily cash allowance to the insured to help with the hospitalization expenses. The number of days you’re allowed to utilize this cash is defined in the rider.

To conclude, insurance riders provide added benefits to the existing policy. The extra premium for a rider is also pretty low. You should be thorough and careful about the terms of the rider. An insurance rider can enhance your life coverage and provide secure financial support for your family.


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