The biggest and costliest mistake people do at the time of purchasing the term insurance policy is that they don't opt for necessary riders and settle for Death cover only. In certain life insurance companies, if you buy term insurance online, it does not cover for certain riders such as Terminal illness and Waiver of premium in case of permanent total disability.
Do you know how important these riders are ?? In case of a terminal illness, if you are diagnosed with an end-stage illness that is not curable and are expected to die within 12 months, the insurance company pays out a lump sum amount to the policyholder. Similarly in case of waiver of premium, if the insured is permanently disabled due to accident, the insurance company waives off all the future insurance premiums of the term insurance policy and the insurance policy continues till the term opted by you.
Another very important rider that the insured must opt for is Accidental Death. If the policyholder dies due to accident then, he.she would be getting the additional sum assured on top of the basic sum assured.
Similarly one can also opt for permanent and partial disability, wherein the insurance company would pay you the sum assured opted at the time of buying insurance policy in case you are permanently and partially disable due to accident.
It is important since the policyholder meets with an that leads to his/her disability, how will they ensure that its family's financial needs are met?
