An Insurance expert (IA) overheard two young men, A & B, in a café. The conversation is as pictured below.
A - What are Riders in Insurance?
IA - ‘Riders’ in a financial context actually means an optional insurance linked benefit, purchased separately at an additional premium. Riders help the insured customize the policy to fit his or her specific needs.
B- What are the different types of riders?
IA - There are several types of riders and they differ from company to company and policy to policy.Here is an indicativelist of riders:
B - Can I add or discontinue a rider any time within the policy tenure?
IA - Generally, riders have to be selected at the time of buying the policy. However, certain insurers do allow addition of riders at a later date. Opting out of the rider depends on the terms and conditions of the rider.
A - Is there any limit on the coverage amount, premium and number of riders I can opt for?
IA - Generally, there is no limit but the premium of health related rider cannot be more than 100% of premium amount of basic policy. In addition, all other riders put together shall be subject to a ceiling of 30% of the premium of the basic policy. The benefits arising from each of the riders should not exceed the sum assured under the basic policy.
One can select a rider based on the perceived risks and needs from the insurance policy. The benefits offered may be different from each insurer and may vary from rider to rider.
"Be the CEO of your life"- Robin S. Sharma -
QUOTE OF THE DAY
Life insurance is another such thing, and the right time to learn about it- any time between when you start earning money to when you’re forced to stop.
Parting from a loved one is always difficult and there is no parting more difficult and grievous than the one that comes with death. However, even in such unfortunate circumstances, there are certain obligations that you need to fulfil.
All insurance policies are available to everyone (subject to underwriting decisions). There are no special policies, so if you’re being told you’re being given preference, don’t take it at its face value.
Do you have a valuable possession you always wanted to insure but weren’t sure if it was possible to do so? After reading about these 5 strange insurances being availed in India, you’ll have your answer.
Though working on filing an insurance claim after the death of a loved one is always hard, you must try and look at the bigger picture, which is that they wanted to make sure you are well taken care of.