Term insurance is a simple life insurance product that offers high life cover at affordable premium rates. If a policyholder dies during the policy term, the term plan takes care of the financial needs of his/her loved ones. And, adding the right term insurance riders at minimal premiums with your term insurance plan makes it more comprehensive, offering extra protection to your family. Let us see what is term rider and the multiple types of term insurance riders available in India.
Note: Know more about what is term insurance first before reading this article.
Here are six important riders and their term insurance benefits.
Medical inflation, rising lifestyle diseases, and increasing accident cases have made additional protection more important than ever. A basic term plan may not always cover financial challenges arising from disability, hospitalization, or critical illnesses.
Some important reasons why term insurance riders matter include:
Critical illnesses such as cancer, heart disease, kidney failure, and stroke are increasing among younger working professionals.
Accidental deaths and permanent disabilities can lead to sudden income loss for families.
Hospitalization expenses and ICU costs can create a financial burden despite having savings.
Riders provide extra protection at comparatively affordable premiums when added to a term plan.
They help policyholders continue their coverage even during financial hardships through waiver benefits.
Adding suitable riders can therefore make your term insurance plan more comprehensive and financially practical.
Term Plans
| Rider Type | What It Covers | Benefit Payout | Suitable For |
| Accidental Death Benefit Rider | Death caused due to accidents | Additional lump sum payout | Individuals with frequent travel or field jobs |
| Critical Illness Rider | Serious illnesses like cancer, heart attack, stroke | Lump sum payout on diagnosis | Working professionals with dependents |
| Waiver of Premium Rider | Future premium waiver during disability or illness | Premiums waived, policy continues | Sole earning members |
| ATPD Rider | Permanent disability due to accident | Regular or lump sum income support | Salaried individuals and self-employed persons |
| Terminal Illness Rider | Diagnosis of terminal disease | Advance payout from life cover | Families needing medical financial support |
| HospiCare Rider | Hospitalization and ICU admission | Fixed daily or lump sum benefit | Individuals without comprehensive health cover |
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An Accidental Death Benefit Rider provides an additional payout to the nominee if the policyholder dies due to an accident during the policy term. This amount is paid over and above the base sum assured of the term insurance plan.
For example, if a policyholder has a Rs. 1 Crore term plan and adds an accidental death rider of Rs. 25 Lakhs, the nominee may receive Rs. 1.25 Crores in case of accidental death.
Provides extra financial support to the family
Helps cover sudden liabilities and income loss
Suitable for people who travel frequently or work in higher-risk professions
A Critical Illness Rider offers a lump sum payout if the policyholder is diagnosed with a serious illness mentioned in the policy terms. Some of the critical illnesses covered include cancer, heart attack, stroke, kidney failure, paralysis, and major organ transplant.
The term insurance payout amount can be used for hospitalization, treatment expenses, recovery costs, or household needs during the treatment period.
Financial support during expensive treatments
Covers major illnesses that could affect earning capacity
Helps maintain lifestyle and savings during recovery
Can support women against illnesses such as breast or cervical cancer
The Waiver of Premium Rider ensures that the future premiums of the term insurance policy are waived if the policyholder suffers disability, critical illness, or income loss as specified in the policy terms. Despite the waiver, the policy remains active for the entire duration.
This rider is especially useful for people who are the primary earners in their families.
Waiver of Premium on Accidental Total Permanent Disability
If the policyholder becomes permanently disabled after an accident and is unable to earn, the future premiums are waived.
Waiver of Premium on Critical Illness
If the policyholder is diagnosed with a major illness that impacts income, the insurer waives the remaining premiums while continuing the policy coverage.
Prevents policy lapse during financial hardship
Keeps life cover active without future premium burden
Useful for individuals with financial dependents
The Accidental Total and Permanent Disability (ATPD) Rider provides financial assistance if the policyholder suffers total or permanent disability due to an accident. Depending on the insurer, the payout may be provided as a lump sum or regular income over several years.
This rider can help policyholders manage daily expenses and household responsibilities even after losing earning ability.
Offers income support during disability and family financial stability
Helps maintain family financial stability
Supports long-term lifestyle and rehabilitation expenses
A Terminal Illness Rider allows the policyholder to receive a part of the life cover amount in advance if diagnosed with a terminal illness during the policy term.
The amount received can help manage expensive treatments, hospital bills, or family financial needs during the final stages of illness.
Helps reduce treatment-related financial stress
Supports family during emotionally and financially difficult situations
Usually inbuilt or available at comparatively low additional premium
The HospiCare Rider provides fixed financial benefits during hospitalization. Some insurers offer daily cash benefits for hospital stays and higher payouts for ICU admissions.
Unlike regular health insurance, this payout can be used freely for medical or non-medical expenses such as travel, food, or income replacement.
Useful for handling non-medical expenses
Additional support during ICU admissions
Suitable for people with limited emergency savings
| Profile | Recommended Riders |
| Young salaried professional | Critical Illness + Waiver of Premium |
| Married individual with children | Critical Illness + Accidental Death Benefit + WOP |
| Self-employed professional | ATPD + Critical Illness |
| Frequent traveler | Accidental Death Benefit + ATPD |
| Women policyholders | Critical Illness Rider |
| Individuals without health cover | HospiCare Rider |
The cost of riders depends on factors such as age, coverage amount, occupation, health condition, and insurer. However, riders generally increase the premium by a manageable amount while significantly improving the policy coverage.
| Rider | Approximate Premium Impact |
| Accidental Death Benefit Rider | Low |
| Critical Illness Rider | Moderate |
| Waiver of Premium Rider | Low to Moderate |
| ATPD Rider | Moderate |
| Terminal Illness Rider | Usually minimal |
| HospiCare Rider | Moderate |
Before adding riders, compare their inclusions, exclusions, claim conditions, and premium costs across insurers.
The most important term insurance riders are Critical Illness Rider, Accidental Death Benefit Rider, and Waiver of Premium Rider. These riders help provide financial support during medical emergencies, accidental death, or income loss.
The three most commonly recommended term insurance riders in India are:
These riders in term insurance improve the overall protection offered by a basic term insurance plan.
The priority of term insurance riders depends on your needs:
For most salaried individuals, CI and WOP riders are usually prioritized first.
A 30-year-old salaried person can consider adding:
These riders help protect income, savings, and financial goals during emergencies.
A terminal illness rider allows the policyholder to receive a portion of the life cover amount in advance if diagnosed with a terminal illness during the policy term. The payout can help manage treatment and family expenses.
An accelerated death benefit rider allows early access to a part of the term insurance sum assured if the policyholder is diagnosed with a terminal illness. The remaining amount is later paid to the nominee as per policy terms.
You do not need all riders. You should choose riders based on your age, income, health condition, lifestyle, and financial responsibilities. Most people usually add 1-3 riders that match their specific protection needs.
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Varun has spent years in the insurance space, but what drives him isn't policies or premiums — it's the conversations he's had with real people. A young father in Pune wondering if his salary is enough. A newly married couple in Jaipur putting off "the insurance talk" for later. A mother in Chennai who never knew her husband was underinsured until it was too late. These stories stay with him. As Head of Term Insurance at Policybazaar, Varun knows the numbers well — 52.4% of Indians are aware of term insurance, yet only 9.6% own it. And 87% of families don't realise they're leaving their loved ones with far less protection than they actually need. But behind every statistic, he sees a family that just needed someone to sit with them, explain it simply, and help them take that one step. That's exactly what Policybazaar's term insurance is built to do. In his words, "Most people aren't avoiding protection — they're just waiting for someone to make it easy. That's what we're here for."
˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.
Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
Rs. 400/month is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.
Rs. 400/month (Rs.13/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
+Rs. 230 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.
+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.
+Rs. 12/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.
+Rs. 497/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
+Rs. 487/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
+Rs. 626/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
+Rs. 905/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
+Rs. ₹361/month is the starting price for a ₹1 crore loan cover with an 8% interest rate for an 18-year-old male, non-smoker, with no pre-existing diseases, loan tenure up to 20 years, rounded off to the nearest 10
+Rs. 1,267/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.
+Rs. 447/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
+Rs.679/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
+Rs. 910/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
+Rs. 1,374/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
+Rs. 1,924month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.
Women
+Rs. 400/month is Starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.
Rs. 461/month is the starting price for a 1 crore term life insurance for an 24 year-old female, non-smoker, with no pre-existing diseases, cover upto 54 years of age.
1,642/month is the starting price for a 1 crore term life insurance for an 44 year-old female, non-smoker, with no pre-existing diseases, cover upto 74 years of age.
Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited
We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881
For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale
Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.
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