When buying yoghurt from llao llao, you will not just buy a plain one but instead top it up with some colourful fruits or crispy bits.
These toppings are akin to riders for your insurance policies.
For example, you have a no-frill term plan that covers for your death and terminal diseases (TI). By adding a Critical Illness (CI) rider, you are covering more with one policy.
Why don’t I just buy many different types of policies ?
Of course you may do so ! However, you may note that insurance companies typically impose a policy fee to each policy. Thus, by having riders, you can save money by paying for less policy fee. With most plans, you have the options to add on some riders to enhance your coverage
What are the common Riders then ?
Commonly also known as Living Rider, this rider will pay out the Sum Assured upon diagnosis of any one of pre-defined the 30 or more critical illnesses. This is by far, the most common and important rider as it provides you with the financial ability to combat your illness
Waiver of Premium
This rider will allow you as policyholder not to pay for the premium when a specific event occurs. It may be in the event of your disability or contracting of a CI. This will allow you to continue to enjoy the coverage of the policy without paying the premium. A fine example of its usage is when a parent purchase this rider for an endowment plan, intended for the child. The endowment plan remains in-force, even when the parent has passed away.
Personal Accident (PA)
PA riders are additional Sum Assured that you will received in the event of death or disability by accident. However, you may note that the definition of ‘accident’ may differ from insurer to insurer. You may also note that some insurance plans have integrated one or more riders into their main plan.
Commonly attached to healthcare plan, this rider provides you with a daily income while you are hospitalized. However, for some insurance polices, the rider may only start paying after a specified period in hospital.
The above are some of the common riders in the market. Please leave your comments if you wish for us to explain more riders.
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