Much like a mysterious thriller on the silver screen, life is filled with unexpected turns and twists. You can never predict what each new day will bring, or whether or not it could be your last. But what is in your control is preparing yourself and your family for what might happen. It is pertinent to provide your family with adequate protection in the unlikely event of premature death or the occurrence of a permanent disability.
Situations like these are not only emotionally draining, but also bring with them a host of financial difficulties. A life insurance plan safeguards your family against financial risk and ensures that you stay financially secure during difficult times. And with specific riders, you can customise your plan to suit your needs, thereby maximising the benefits they provide you.
Riders offer additional benefits that you can incorporate into your basic insurance policy to increase or limit the policy coverage. If due to unforeseen circumstances, the policyholder becomes permanently disabled due to an accident or is diagnosed with a critical illness, it would limit their earning capacity and they wouldn’t be able to pay their insurance premiums, rendering the policy moot. In addition, you would also have to bear the burden of medical costs increasing your financial woes.
Riders prove beneficial in such situations giving you the flexibility to personalise and enhance your cover. We explore three types of riders offered by Kotak Life Insurance and the many benefits they can provide you with.
Accidental death benefit rider
This rider comes into play if the policyholder passes away unexpectedly from an accident (covered in the policy), your family will still be financially protected. In fact, in India, more than 97k people died due to accidents in 2018 caused by over speeding, accounting for 64.4 percent of the total deaths in India; as per the road transport and highways ministry report on ‘Road Accidents in India, 2018’. With the help of this rider, your beneficiaries will receive the additional sum assured, in case an accident leads to the death of the insurer. The rider specifically covers death due to a naturally-caused accident and excludes death caused by illegal activities.
Critical illness rider
Cardiovascular diseases take the lives of 17.9 million people every year, 31 per cent of all global deaths. And as per data from National Health Profile, 2019, cancer cases have risen by over 300% in one year. In the event that you are diagnosed with critical illnesses such as cancer, coronary artery bypass, major organ transplant, paralysis, or have a heart attack, renal failure, or stroke, the policy will pay out a lump sum amount.
Permanent disability rider
If you meet with an accident that leaves you permanently disabled such as being visually impaired or restricts the use of your hands and feet, this rider will provide added protection. Having a disability can directly impact the policyholder's capacity to earn, therefore provides you with an assurance of an income when you are unable to work.
No matter what life throws at you, it is best to always be prepared to handle anything that comes your way. Don’t leave anything to chance. Purchase a complete plan with Death, Disability and Critical Illness riders.
This is a partnered post.