Rider Life Assured in Term Insurance

While the base policy typically covers the policyholder’s life, the rider life assured is the person protected under the rider. Let us understand what rider life assured is, how it works, and why it’s important to choose the right riders for your coverage needs.

What is Rider Life Assured?

The rider life assured is the person whose life or specific risks are covered by the rider attached to the term insurance policy. In most cases, the rider life assured is the same as the policyholder of the base term insurance plan. However, in certain situations, riders can be added to protect additional people, such as a spouse or a child, depending on the insurance provider’s T&Cs.

Example:

If you are the primary policyholder and purchase an accident cover rider, you are the rider life assured. This means that if you are diagnosed with a covered critical illness, the rider sum assured will be paid out to you.

How Riders Work with the Life Assured?

Term Insurance Riders are added to the base term insurance policy to extend coverage beyond death benefits. They offer protection against specific risks, such as accidental death or major health issues. When you purchase a rider, the life assured under the rider will receive the benefits if the covered event occurs.

Common Riders and Their Coverage for the Life Assured:

• Accidental Death Rider: If the life assured dies in an accident, the rider sum assured is paid out in addition to the base policy’s death benefit.

• Critical Illness Rider: If the life assured is diagnosed with a critical illness like cancer or heart disease, a lump sum is paid out.

• Waiver of Premium Rider: If the life assured becomes disabled or critically ill and cannot work, the insurance company waives future premiums while keeping the policy active.

• Income Benefit Rider: If the life assured passes away, this rider provides the family with a monthly income for a specified period.

What is the Importance of Rider Life Assured?

Understanding who the rider life assured is and what the rider covers is crucial when choosing additional protection for your term insurance policy. Term insurance riders can provide valuable financial security in specific situations that the base policy does not cover.

Benefits:

• Comprehensive Protection: Riders allow you to protect yourself or your family from specific risks like accidents or illness. By being the rider life assured, you can receive added financial benefits if a covered event occurs.

• Customizable Coverage: Depending on the type of rider, the life assured under the rider can be yourself, your spouse, or even a child. This flexibility allows you to extend coverage to other family members if needed.

• Affordable Add-ons: Riders are generally more affordable than purchasing separate insurance policies for specific risks. As the life assured, you can boost your term insurance coverage without a significant increase in premiums.

Why Choose the Right Riders for the Life Assured?

When deciding which riders to add to your term or life insurance, it’s important to assess your needs and financial situation. Riders offer extra protection, but each comes with its own terms and conditions. Ensure that the rider sum assured and coverage align with your life stage and future goals.

How to Choose the Right Term Insurance Riders for Your Term Plans?

• Assess Your Risks: Consider the specific risks you want coverage for, such as accidents, illnesses, or income loss. This will help you determine which riders are necessary.

• Review the Rider Sum Assured: Choose an appropriate sum assured for the rider based on your financial needs. Make sure it provides adequate coverage without making premiums unaffordable.

• Understand the Terms: Be aware of the policy and premium payment terms for each rider. Make sure they fit your long-term financial plans.

• Check for Flexibility: Some insurers allow you to add riders that cover other family members, such as your spouse or children. If you need this type of flexibility, choose an insurer that offers it.

Final Thoughts!

The rider life assured is the person whose life or specific risks are covered by a rider in a term insurance policy. Riders offer additional protection for specific events like accidents, critical illness, or disability. Understanding the role of the life assured in a rider, along with the policy term and premium payment term, helps ensure that your coverage is comprehensive and aligned with your financial goals. When choosing riders, carefully assess your needs, financial capacity, and the terms of the rider to ensure you get the best possible protection.

Note: You should also check the term insurance benefits if you are planning to purchase the term insurance plan.