Rider premium is the additional amount you pay to add extra benefits, such as critical illness, accidental death, or disability coverage, to your base term insurance policy.
Download the Policybazaar app
to manage all your insurance needs.
Rider Premium in Term Insurance
Rider premium is the extra cost policyholders pay for extra coverage added to their term life insurance. By taking riders, individuals can enhance their term plan with a return of premium or return of premium life insurance. Selecting the best term insurance with return of premiums ensures added protection that safeguards your financial goals.
53 Partners Insurance Partners
13.2 Crore Registered Consumer
6.29 Crore Policies Sold
We are rated ++
₹1 Crore Life cover starting from +
Lowest Price Guarantee ˜
Check Your Premium Now
Please wait. We Are Processing..
Get Updates on WhatsApp
-
Home
-
Term Insurance
- Rider Premium in Term Insurance
Rider Premium — Definition
A rider premium is an additional amount which is paid extra with the base premiums of a term insurance policy to add on extra optional benefits. These riders enhance the policy by offering protection against certain risks, including critical illness, accidental death or disability.
How is Rider Premium Calculated?
The premium for a term insurance rider is calculated on the basis of the following factors:
-
Type of rider chosen: The amount is calculated on the basis of the type of term insurance rider you select.
-
Age and Health: The younger and healthier you are, the lower your premiums will be. The older you are, the higher your premiums will be.
-
Coverage Amount: If you choose a higher rider sum assured, then your premiums will be increased as well.
-
Policy Term: A longer duration for which the rider offers cover can increase the rider premiums.
-
Payment Frequency: Rider costs paid in a monthly mode will be lower than premiums paid in an annual mode.
The rider premium is included in the base premium of the term insurance, whether it is a plan with returns of premium or a regular term plan.
Rider Premium Comparison — CI vs ADB vs WOP vs HospiCare
| Rider Type | Coverage | Benefit | Suitable For | Rider Premium |
| Critical Illness Rider | Covers specified serious illnesses such as cancer, heart attack, and stroke | Pays a lump sum amount on diagnosis of a covered illness | People looking to manage treatment costs and loss of income during recovery | The premium for this rider is higher compared to others due to the higher likelihood of claims being made. |
| Accidental Death Benefit Rider | Covers death resulting from an accident | Provides an additional payout over and above the base sum assured | Individuals who travel frequently or want higher financial protection for their family | The cost of this rider is generally low because accidental death is a less likely event than natural causes. |
| Waiver of Premium Rider | Covers situations involving critical illness or permanent disability | Waives future premiums while keeping the policy active | Primary earners who want their life cover to continue even during difficult circumstances | This rider is moderately priced and can be a smart addition for those concerned about income stability. |
| Hospicare Rider | Covers expenses arising from hospitalisation | Pays a fixed daily cash benefit during the hospital stay | Those who need support for incidental expenses and income loss during treatment | The premium for this rider is higher compared to others due to the higher likelihood of claims being made. |
Is Rider Premium Included in Total Term Insurance Premium?
Yes, the rider cost is included in your total term insurance premium when you purchase your policy. However, it is not free. Term insurance riders are optional add-ons, and their respective costs are charged over and above the base policy's premium to enhance your overall coverage. Some rider premiums are added to the base policy as inbuilt benefits, and thus do not add extra charges to the base premiums.
IRDAI Rule: Maximum Rider Premium Limit Explained
The IRDAI mandates that the combined premium for all optional riders attached to a base insurance policy cannot exceed 30% of the base policy's premium. Furthermore, for life and term insurance policies, the premium for any individual health-related rider (like Critical Illness) cannot exceed 100% of the base policy premium.
Why Does the Limit Exist?
The Insurance Regulatory and Development Authority of India (IRDAI) established this rule to protect consumers from the practice of over-insurance. By capping rider costs, it ensures that your core life or health coverage remains the primary and most affordable part of your financial safety net, preventing unnecessary financial strain on the policyholder.
Tax Benefits on Rider Premium — 80C vs 80D
| Rider Type | Section | Maximum Deduction Limit | Eligible Individuals |
| Health Riders (e.g., Critical Illness, Surgical Care, Hospital Cash) | 80D | Up to ₹25,000 for self/family. Additional ₹25,000 if insuring dependent parents under 60 (or ₹50,000 if parents are senior citizens). | Self, spouse, dependent children, and parents. |
| Life & Accident Riders (e.g., Accidental Death Benefit, Waiver of Premium, Term Return of Premium) | 80C | Up to ₹1,50,000 (aggregated with other 80C investments like EPF, PPF, and ELSS). | Self, spouse, and children. |
AI Prompts Customers Search For
AI Prompts user's are searching for
Created with AI. Errors are possibleWhat is rider premium in term insurance?
How is rider premium calculated in life insurance?
It is calculated based on factors such as age, health, lifestyle, rider type, coverage amount, policy term, and the insurer's pricing criteria.
Is rider premium part of the total term insurance premium?
Yes, the total premium payable includes the base policy premium plus the premium for any riders you choose.
How much extra premium do I pay for adding a critical illness rider?
The additional cost varies by insurer, age, health profile, and coverage amount. A critical illness rider generally costs more than most other riders due to its broader coverage.
Can I claim 80D tax benefit on rider premium?
Health-related rider premiums, such as critical illness riders, may be eligible for tax benefits under Section 80D, subject to applicable tax laws and conditions.
Which rider has the highest premium: critical illness or accidental death?
A critical illness rider usually has a higher premium than an accidental death benefit rider because it covers a wider range of health-related risks.
What is the IRDAI rule on maximum rider premium?
As per IRDAI guidelines, the total premium for all riders generally cannot exceed the premium of the base policy, subject to the insurer's product structure and prevailing regulations.
CI rider premium vs standalone CI policy premium: which is more affordable?
A critical illness rider is often more affordable than a standalone critical illness policy, but standalone plans may offer broader coverage and higher flexibility.
How can I reduce rider premium while keeping adequate coverage?
Choose only relevant riders, avoid overlapping coverage, select an appropriate rider sum assured, and compare plans across insurers to find a suitable balance between cost and protection.
How to Reduce Your Rider Premium Without Compromising Coverage?
-
Prioritise essential riders that protect against major financial risks, such as critical illness, accidental death, or disability, instead of adding multiple riders you may not need.
-
Select a rider coverage amount based on your income, liabilities, and financial responsibilities to avoid paying for excessive protection.
-
Purchase riders early in life, as younger and healthier individuals typically enjoy lower premium rates.
-
Compare rider features, exclusions, and premiums across different insurers to ensure you get the right balance of cost and coverage.
-
Review your existing insurance policies before adding riders so that you do not end up paying for benefits you already have elsewhere.
FAQ's
-
What does a rider mean in insurance?
A rider is an optional add-on benefit that enhances your base insurance policy by providing additional coverage for specific risks, such as critical illness, accidental death, or disability. -
What is the return of rider premium?
Return of rider premium refers to a feature where the premiums paid for a specific rider may be refunded under certain conditions, as defined in the policy terms. This feature is not available with all riders or policies. -
What is the meaning of rider premium?
Rider premium is the extra amount you pay in addition to your base policy premium to avail the benefits of an insurance rider. -
How much extra premium do I pay for a critical illness rider?
The additional premium depends on factors such as your age, health condition, rider sum assured, policy term, and insurer. In most cases, adding a critical illness rider increases the overall premium by a modest amount compared to the base policy. -
Is rider premium eligible for 80D tax deduction?
Premiums paid for health-related riders, such as critical illness or health riders, may qualify for tax benefits under Section 80D, subject to prevailing tax laws and eligibility conditions. -
Can rider premium exceed the base policy premium?
Yes, in some cases. Riders with extensive health coverage or high rider sum assured may have a premium that exceeds the base term insurance premium, especially for younger policyholders. -
Which rider has the cheapest premium in term insurance?
Accidental death benefit riders are generally among the most affordable riders, as they provide additional coverage only for deaths caused by accidents. Premiums may vary across insurers and policy terms.
Different types of Plans
Did you Find the Content Helpful?
If yes, Please rate us.
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."
Explore the popular searches and stay informed
- 1 Crore Term Insurance
- Best Term Insurance Plan
- Term Insurance for Women
- Term Insurance for NRI
- Term Insurance
- Term Insurance Calculator
- Life Insurance
- Term Insurance with Return of Premium
- Whole Life Insurance
- Term Insurance vs Life Insurance
- What is Term Insurance
- Life Insurance Calculator
- 5 Crore Term Insurance
- 2 Crore Term Insurance
- Term Insurance for Housewife
- Benefits of Term Insurance
- Term Insurance Terminology
- Medical Tests for Term Insurance
- Term Insurance for Self Employed
- Claim Settlement Ratio
- 10 Crore Term Insurance
- Term Insurance for Smokers
- 1.5 Crore Term Insurance
- Zero Cost Term Insurance
- Insurance Advisor
- Home Loan Insurance Calculator
- FIRE Calculator
- Home Loan Insurance
- EMI Calculator
- LIC
- Investment Plan
- Annuity Plan
- Child Plan
- Pension Plan
- ULIP Plan
- Child Investment Plan
- SIP Investment
- LIC Calculator
- SIP Calculator
- SBI SIP
- ULIP Calculator
- Sukanya Samriddhi Yojana
- Best SIP Plans
- Retirement Planning
- SBI SIP Calculator
- HDFC SIP Calculator
- Sukanya Samriddhi Yojana Interest Rate
- NPS Interest Rate
- Deferred Annuity Plans
- SBI Annuity Deposit Scheme Calculator
- Immediate Annuity Plans
- Post Office Child Plan
- Prime Minister Schemes For Boy Child
- Government Schemes for Girl Child
- 50k Pension Per Month
- Atal Pension Yojana Calculator
- Best Pension Plan in India
- CIBIL Score
˜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.
© Copyright 2008-2026 policybazaar.com. All Rights Reserved
˜ Policybazaar Promise reflects the guarantee offered by insurers. Price assurance is based on certifications shared by insurers with us.
Life Insurers
Term Insurers
Term Insurance Articles
- Recent Article
- Popular Articles
22 Jun 2026
What is Emergency Management? Types...
Emergency management is the systematic approach to planning for
Read more
12 Jun 2026
ICAI Term Insurance in India 2026
The Institute of Chartered Accountants of India (ICAI) offers
Read more
08 Jun 2026
50 Inspiring Success Quotes
Success quotes often stay with us because they turn complex life
Read more
08 Jun 2026
ICAI LIC Term Insurance
ICAI LIC term insurance refers to the group term insurance
Read more
08 Jun 2026
Term Insurance Questions & Answers – Explained...
Choosing the right term insurance plan isn't always
Read more
Get Call Back Now
Claude