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The Importance of Riders in Your Life Protection Insurance 

A life insurance policy is important as it protects an individual’s family in the case of his or her untimely death. There are many types of life insurance that are available. Endowment policies, term life insurance, unit-linked investment plans (ULIPs), whole life insurance, and other types of life insurance are some of them. Most life insurance agencies in the market offer numerous rider plans to boost the amount of protection offered in addition to the fundamental protection offered by a life insurance policy. 

 

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Some might be wondering, what is a rider in an insurance plan? A rider is an extra benefit in addition to your standard insurance plan. It is an optional plan that will help you enhance your life protection policy. Riders can be useful in scenarios that aren’t covered by standard life insurance. Some riders provide lifetime advantages by allowing you to access money from your policy’s death benefit. 

 

There are many types of life insurance riders that you can choose from to add-on to your standard insurance plan. Here, we have curated a list of the most common type of life insurance riders plan:

 

  • Income Benefit 

Following the death or permanent total disability of the primary insured, this rider pays a fixed monthly income for a certain length of time. This is a useful add-on insurance that protects a family’s finances from income loss caused by the insured’s death or disability.

 

  • Accidental Death 

If you die in an accident, an accidental death rider enhances your death benefit. The supplementary benefit paid in the event of an accident is frequently equivalent to the face value of the original policy, thereby doubling the total payout to your beneficiaries. 

 

  • Waiver of Premium

If the premium amount is not paid within the grace period granted by the company, the life insurance policy will terminate. It may be extremely difficult to keep the current policy if the insured loses income due to a handicap. If the insured is unable to pay the premium due to a disability, this rider will keep the policy alive by waiving any future premiums.

  • Disability Cover

A disability rider cover is a useful benefit in case if the insured suffers a total, partial, or permanent disability as a result of an accident, stroke, or any other cause. This rider ensures that in the event of disability, the insured and their family will receive a lump payment or an income benefit.

 

  • Child Term Cover

This add-on covers your child if they die before reaching a specific age. When your child reaches adulthood, term insurance can be transferred to permanent insurance, and no medical tests are necessary. The amount of converted coverage can be up to five times the amount of original term insurance.

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Each rider offers a distinct benefit and caters to various requirements. You won’t be able to add some riders after you’ve started your life insurance policy. A good insurance agent can assist you in weighing the advantages of various rider options and determining which one is best for you and your family. It is highly recommended for everyone to buy all protection rider insurance plan Malaysia if you want to ensure extra protection in your life.