Are Add-ons and Optional Features of Term Insurance Really Beneficial?
![Are Add-ons and Optional Features of Term Insurance Really Beneficial?](/content/dam/hdfclifeinsurancecompany/knowledge-center/images/retirement/Add-Ons-and-Optional-Features.png)
Table of Content
Everybody understands the importance of having term insurance. The plan provides financial stability when your loved ones need it most. Many young individuals purchase term plans without thinking about the benefits or riders. In fact, most people only compare the sum assured and premiums before buying their term policy. Let’s understand the add-ons and optional features and whether they benefit policyholders.
What Are Add-Ons in Term Insurance?
Add-ons in term insurance provide you and your beneficiary with something over and above the basic sum assured amount. Typically, the benefit could be a payout on an event other than the policyholder’s death or an additional payout due to the circumstances that took the policyholder’s life. Almost every term insurer offers the following add-ons with their term plans:
Accidental Death or Disability Benefit
An accident could become fatal or lead to disability. In these situations, the rider provides an additional payout to help you and your loved ones deal with the difficult situation.
Critical Illness Benefit
Life-threatening illnesses like heart attacks and cancer often have long and expensive roads to recovery. The benefit covers a number of specific critical illnesses. In case you get diagnosed with one of them, the add-on offers a payout. You can use the money received to pay for your treatment or replace your family’s lost income.
Waiver of Premium Rider
The rider waives off future premiums in case of a critical illness diagnosis or after an accident leads to disability. Policyholders no longer have to pay the regular premium but the plan remains active ensuring the beneficiary still receives the sum assured payout.
Why Should I Purchase Add-ons with My Term Plan?
All riders or add-ons come at a cost that gets added to your premium amount. You may wonder whether the additional cost is worth it. Let’s see some reasons why you should opt for add-ons with your policy:
It’s Cost Effective
Add-ons provide benefits that other policies may provide at affordable prices. You can opt for critical illness coverage or accidental disability coverage for the fraction of the cost of a new plan.
No Need for Additional Medical Checks
When you purchase a term plan, you may have to undergo a few medical tests. You do not require additional tests when you purchase a rider with your policy. However, if you hope to purchase a stand-alone critical illness cover, you could have to pay for extra tests.
Some Benefits Are Unavailable
You cannot get the benefits from riders like the waiver of premiums or accidental death with any other policy. These benefits work solely with your term plan and provide enhanced financial coverage when you require it most.
Should I Purchase Every Add-On or Optional Feature?
While add-ons provide numerous benefits, you must choose wisely. People with high-risk jobs, like pilots or miners, benefit the most from choosing an accidental death and disability rider with their plan. Individuals who travel often will also benefit from it. However, those who work from home or do not undertake any activities that could cause a fatal accident can skip paying for the rider. While selecting add-ons, you must find what works for your lifestyle and financial requirements.
Add-ons and optional features can make your term plan even better. Ensure you check the riders available and select the ones you need before paying your premium. If possible, purchase term plans and riders when you’re young and healthy so you can get the maximum benefits at a minimal cost.
Similar Articles
- What is Term Insurance?
- What Will Happen When a Term Life Insurance Policy Matures?
- 4 Simple Methods to Calculate : How Much Term Insurance You Need
- Types of Death Not Covered by Term Insurance
- 5 Reasons Self Employed People Should Buy Term Insurance
- 1 Crore Term Insurance
- What Does Happen to Your Term Insurance Plan Post-Divorce?
- 8 Questions to Ask Before Buying Term Insurance
- Monthly vs. Lump-Sum Payout in Term Insurance
- What if I Start Smoking after Taking Term Insurance?
ARN - ED/12/22/30859
Term Plan Articles
Investment Articles
Life Insurance Articles
Tax Articles
Retirement Articles
ULIP Articles
Subscribe to get the latest articles directly in your inbox
Health Plans Articles
Child Plans Articles
Popular Calculators
Here's all you should know about life insurance.
We help you to make informed insurance decisions for a lifetime.
![HDFC life HDFC life](/content/dam/hdfclifeinsurancecompany/icons/EEAT-logo.png)
![HDFC life HDFC life](/content/dam/hdfclifeinsurancecompany/icons/EEAT-logo.png)
HDFC Life
Reviewed by Life Insurance Experts
HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.
![Popular Search Popular Search](/content/dam/hdfclifeinsurancecompany/home/search-visual.png)
Popular Searches
- Term Insurance Calculator
- Investment Plans
- Investment Calculator
- Investment for Beginners
- Best Short Term Investments
- Best Long Term Investments
- 5 year Investment Plan
- savings plan
- ulip plan
- retirement plans
- health plans
- child insurance plans
- group insurance plans
- income tax calculator
- bmi calculator
- compound interest calculator
- income tax slab
- Income Tax Return
- what is term insurance
- Ulip vs SIP
- tax planning for salaried employees
- HRA Calculator
- Annuity From NPS
- Retirement Calculator
- Pension Calculator
- nps vs ppf
- short term investment plans
- safest investment options
- one time investment plans
- types of investments
- best investment options
- best investment options in India
- Term Insurance for Housewife
- Money Back Policy
- 1 Crore Term Insurance
- life Insurance policy
- NPS Calculator
- Savings Calculator
- life Insurance
- Gratuity Calculator
- Zero Cost Term Insurance
- critical illness insurance
- itc claim
- deductions under 80C
- section 80d
- Whole Life Insurance
- benefits of term insurance
- types of life insurance
- types of term insurance
- Benefits of Life Insurance
- Endowment Policy
- Term Insurance for NRI
- Term Insurance for Women
- Term Insurance for Self Employed