Once you sit down to buy a life insurance policy, you start understanding the many benefits associated with it. Simply put, a solid life insurance plan safeguards your family members from slipping into financial distress, if anything untoward happens to you.
Additionally, a number of life insurance plans such as protection plans, savings and investment plans, retirement plans and more not only give you an option to financially protect your loved ones but also create wealth for future needs, aligning you with financial goals.
That said, there’s a need to do more, in the present day and age. Beyond a plain insurance policy, you must customise it and widen the safety net through various riders.
By adding riders, you can increase the benefits of your life insurance policy, avail benefits while you are alive and make up for any kind of loss of income.
Why do you need riders?
A rider gives you enhanced coverage and protects you against a number of eventualities including accidents and critical illnesses. During accidents and medical emergencies, a critical rider pays a lump sum for your treatment, protecting your savings and investments. Many companies such as Kotak Life have several riders such as accidental death benefit, permanent disability benefit, guardian benefit, and critical illness plus benefit.
Critical illness rider
We are living in uncertain times where cases of cardiovascular diseases and cancer are on the rise, and the future projections also paint a grim picture. As per a report by the World Health Organisation (WHO), one in every 10 Indians will develop cancer and one in every 15 will die of the disease. In this scenario, it becomes important to protect oneself from any type of cancer.
Here, a critical illness rider, such as Kotak Critical Illness Plus Benefit Rider becomes crucial as it provides lump sum amount in case of a surgery. Moreover, the plan protects against 37 critical illnesses, such as major head trauma, heart surgeries, brain surgery, etc.
You can add the rider while purchasing the life insurance policy or any subsequent policy anniversary. The Kotak’s critical illness rider pays 100% rider sum assured. Also, by adding a critical illness rider, you can avail double tax benefits under Section 80C and 80D of the Income Tax Act.
Just a vanilla life insurance plan may not always be favourable, keeping rising diseases and treatment costs in view. Thus, it is advisable to have a complete, i.e. Poora Plan, which has life insurance and riders in it to ensure full protection of yourself and loved ones.
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