Rider in Insurance is the option if exercised will give additional benefit apart from the policy’s basic benefits. .
Every insurance policy offers the customer, variety of riders. The customer can choose any one or many rider as per his wish. For every additional rider picked, the customer has to pay additional premium apart from the basic premium.
The customer can completely avoid all riders offered. This is purely on customer’s choice, no compulsion.
Let us see some famous riders and their benefits.
ADB Rider – Accident Death Benefit Rider
If this rider is chosen, it will usually double the sum assured in case of death due to accident. For example, if a person with a 1,000,000 policy died due to accident, his family will get 2,000,000 if he had added ADB rider in his policy. If not, the death benefit will only be 1,000,000.If the death is due to natural cause, in either case, the family will get only 1,000,000.
WOP Rider – Waiver of Premium Rider
This rider relieves the customer from paying future premium if he is seriously ill or on disability to earn. Even though the premiums are not paid, policy will be in force because of this rider and the customer is entitled to receive full benefits.
Critical Illness or Dreaded Disease rider
This rider gives a portion of sum assured to the customer if he is diagnosed with any of the critical illness disease like heart attack, stroke etc even if he still alive.
There are some other riders also available.
Choosing a desired rider while going for a new policy will certainly enhance its benefits.
There is no free rider Every rider has its own price..