Rider is a provision of an insurance policy that is purchased separately from the basic policy and that provides additional benefits at additional cost. Standard policies usually leave little room for modification or customization, beyond choosing deductibles and coverage amounts. Riders help policyholders create insurance products that meet their specific needs.
Major riders for a life Insurance policy are:
1. Term Rider
2. Accidental Benefit and EPDB Rider
3. Premium waiver rider
4. Critical Illness rider
Things to be kept in mind about riders:
1. Generally rider term is equal to the premium paying term of policy, if policy is limited premium paying policy then term of rider will be mentioned.
2. All the benefits of riders will lapse if premium is not paid with in the grace period. All type of claim concession are not applicable on riders unless specifically mentioned in conditions.
3. Riders are like toppings on pizza, you have to ask for it and is not part of basic policy and you will be charged additionally for it.
4. Riders are attached to policy and have same policy number as of basic policy. Some companies issue separate bond for riders and some just endorse the original policy for specific rider you have taken.
5. Term, premium waiver and critical illness rider are more risky and insurer can ask for medical requirement before accepting the same. Insurer can put some ceiling on rider cover according to their underwriting guidelines.