Are Add-ons Worth Buying Under Term Insurance?


Most people would lean towards trying to spend as little as possible on their life insurance. It may be especially true of younger consumers who earn lesser than their older counterparts and seek to keep their expenses to a minimum. While term insurance is a suitable and affordable choice for most people, some may seek to add more to the plan.

This is made possible through add-ons with term insurance. These ‘add-ons’ are provided by most insurance providers in the form of riders and benefits.

What are Riders and Benefits?

Term insurance riders are additional features available with your policy. There is a range of commonly offered riders, but their availability varies across insurance providers and policies.

You can choose from the riders offered by your insurer as you deem suitable. You may be required to pay for some of these, which in turn may slightly increase your term insurance premium.

On the other hand, term insurance benefits are add-ons that are offered with the plan. The consumer is not required to select from options but can choose a plan that comes with their favoured add-ons.

Types of Term Insurance Add-ons

There are some term insurance riders and benefits that are commonly available as add-ons. Here is a look at some term plan add-ons:

  • Premium Waiver

Term insurance premium waiver is an add-on that enables you to protect your family from the burden of paying the remainder of your policy premium in the event of your demise during the policy tenure. Thus, an add-on is meant to ensure that if the life assured passes away, the premiums on their policy are waived off.

  • Accidental Death

We can neither foresee the time nor the way someone’s life journey may come to an end. Accidents are an eventuality that anyone may encounter. With this add-on, the life assured is able to cover the possibility of any unfortunate accident and its consequences.

  • Family Income

The life assured may be diagnosed with any of the critical illnesses covered by the term plan or meets with an accident that results in death or disability. In such cases, having this add-on would mean that they can receive a part of their rider sum assured as a regular monthly income.

  • Critical Illness

Critical illness is a broad term that covers a list of diseases/conditions deemed critical by the insurance provider and covered under this add-on. These are usually ailments that require extensive medical attention and care. If you have a critical illness rider or benefit with your term plan, and are diagnosed with any of the listed conditions, you can expect a lump sum amount from your policy.

  • Accidental (Permanent/Total/Partial) Disability

If the life assured suffers disability as a result of an accident, they may require care in the future, and it may also affect their income. Having this add-on with your term plan will give you access to financial aid through your policy.

Should You Have Term Insurance Add-ons?

Whether to get a term insurance add-on is a decision that relies upon the policyholder, their means, and their requirements. Add-ons can be helpful for dealing with unforeseen circumstances and give you access to financial aid when you need it. Thus, it adds more value to your policy. It also allows you to stay stress-free and trust that you can turn to your term insurance policy in times of need, since you would have already made provisions for the same.s

Since add-ons may influence your premiums, it is advisable to use a term insurance calculator to figure out the expense beforehand. If you are on a tighter budget, adding to your expenses may not make sense. You can also check if your policy can be boosted with riders and benefits later.

Term insurance add-ons are a simple way to enhance your policy. You can choose as per your needs and customise your policy.

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