So, you have decided on getting life insurance for your loved ones. Fantastic! Now it is time to get into the details and learn about “Riders.”
Riders are optional add-on coverages that you can tag on to your basic life insurance policy. Riders bring customizability to the world of insurance policies. With Riders, you can tailor the insurance policy to meet your specific needs. You can add certain benefits or limit certain aspects of your insurance policy and they only cost a fraction of the life insurance policy.
Like life insurance policies themselves, the Riders and their associated perks differ from insurer to insurer. Hence, it is always advisable to study the specific Riders offered by various insurance providers before committing to any.
Most Popular Life Insurance Riders
Now we come to the most important bit where we will discuss the different Riders that one can choose from depending on one’s needs:
Critical Illness Rider: This is one of the most sought-after benefit as lifestyle diseases are on the rise. This rider provides monetary support in case the policyholder is diagnosed with one of the listed critical illnesses such as multiple sclerosis, heart disease, cancer etc. A lump sum, as per the policy, will be granted to the policyholder regardless of the total amount required for the treatment.
Hospitalization Benefit: This Rider provides for medical and non-medical expenses for the policyholder in the event of hospitalization. A fixed benefit on a per diem basis will be issued by the insurance company. Most insurance companies typically require a minimum number of days at the hospital before this benefit kicks in.
Term Conversion Rider: Normally, Term life insurance policy only covers for a limited amount of time, ranging from 10 to 30 years. However, when the policyholder goes to get another policy, the holder may not get the same coverage benefits that they had. This arises due to the fact that the medical checkup may not make the policyholder eligible for the same benefits that they had while they were 10 or 30 years younger. Term conversion rider helps the policyholder to convert existing term life insurance to permanent life insurance without requiring a medical exam.
Permanent and Total Disability benefit: This is a living benefit wherein if an insured becomes permanently totally disabled, a lump sum is paid out to the policy holder. This benefit helps the family to cover the loss of income and bear the necessary expenses that comes with a disability. The life cover sum will not be reduced if a valid claim for PTD is presented.
Accelerated Death Benefit Rider: This rider provides a portion of the death benefit coverage for the medical bills of the policyholder if s/he is diagnosed with a terminal illness. This is very helpful for covering immediate medical bills and enabling the insured to live his or her last days with dignity.
Family Benefit Income Rider: In addition to the lump-sum an insurance policy provides to the insured’s beneficiary, this Rider provides the family of the policyholder with regular monthly income after the death of the policyholder for a certain pre-determined period of time.
Waiver of Premium Benefit: This rider helps with writing off future premiums of a policyholder if they are totally incapacitated due to a terminal illness or accident as stated within the policy conditions. The policy will continue without requiring premiums to be paid by the policyholder or policy owner.
Dismemberment Benefit: Provides the policyholder with a lump sum if they suffer a loss of limb or sight due to an accident, as stated within the policy conditions.
What riders should you pick?!
Riders are a great way to get additional benefits from a life insurance policy without having to pay the hefty premiums for stand-alone policies covering those same benefits. However, not all riders are for everyone.
Experts from New Age Insurance Brokers are here to guide you through the entire process. We partner with all major life insurance companies in Dubai to provide the right cover for you. Contact us at +971 4 3573378 or email us at firstname.lastname@example.org to know more.
“Life insurance is the last thing that comes to my mind when planning for the future; after all, there are a lot of attractive investment options including investments in bullion, stocks and mutual funds. Why should I invest in life insurance now, when I am active, hale and hearty?”
Sounds like what you or your friends would say about life insurance?
Especially when we are living longer and longer, there is a genuine question around why one needs life insurance. Let us explore the four reasons why we believe millennials need life insurance now more than ever before. Read along.
Sure – You don’t want your family to reel under debts that you procured?
As you grow older, you might acquire some form of a loan or the other. It could be an education loan, some have car loans, some have home loans etc. Due to an untimely death, the burden of these loans can fall on your family: old parents or your spouse and children, as the case may be. A life insurance policy will prevent your family from being saddled with loans they may not have planned for, and possibly cause their financial ruin.
Ensure your family’s dignified living even after death
Life insurance is an income replacement tool. Your income helps run the household, pay for education and healthcare and even help build a kitty for retirement and medical expenses that come with old age. Your untimely departure will jeopardize your family’s ability to sustain the same or a reasonable standard of living as expenses will continue but the incomes supporting that would have stopped.
Even in the case of a non-earning member of the family, there is a financial value that is attached to all the work that the spouse takes on and is responsible for. If the spouse meets an untimely departure, you should expect expenses related to child care, care of the elderly and running of the household to dramatically increase.
Thus, life insurance helps your family to lead a respectable life in case you are not around.
Employer’s Insurance – Is it enough?
Group Life Insurance plans are only now coming into vogue in the UAE. However, even if you are employer provides this benefit, these life insurance plans remain alive as long as you are employed with that particular employer. If you leave the job or are laid off, you are automatically removed from these Group Life Insurance plans.
Additionally, workplace coverage may be more than enough as long you have no dependents. But if you have dependent parents or need to financially take care of your spouse and children, then the employer’s insurance policies typically fall short.
Cannot afford it? Think again
One of the common misconceptions surrounding life insurance is that the cost of getting insured is high.
Yes, that can be true in some circumstances but if you are young and healthy, premiums can be as cheap as a cup of coffee a day! Unfortunately, when we are young and healthy, we assume we will always remain healthy. But health deteriorates over time, accidents do happen and we are susceptible to genetic health risks. It has been rightly said, “Good health buys you life insurance and money only pays for it” So the right time to buy life insurance is precisely when you are young and healthy.
Still unsure about getting life insurance? We understand the hesitation and perhaps you have a lot of questions that you need to be answered before you are able to make up your mind on this one. Our qualified professionals at New Age Insurance Brokers believe in educating our clients and can help draw out a financial plan that will work for you. As a leading insurance broker in UAE, having tie-ups with the most insurance companies in UAE, we will work with you to secure your future. You can e-mail us at email@example.com or call us at 04-357 3378 for a free financial health check-up.