Life security is crucial, now more than ever. One day, everything in your career, health, and personal finance might be going perfectly fine and the next, the situation has changed, whether you are ready for it or not.

Although basic life insurance can give you good coverage against unexpected events, adding insurance riders will make your plan more versatile. A policy with riders can help ensure that whatever life throws at you, you’re more than able to deal.

What is an insurance rider?

You’ve probably heard of the term “insurance rider” but only have a vague idea of what it means in your insurance. Simply put, insurance riders are additional benefits that you can purchase on top of your life insurance policy.

These add-ons allow you to customize your policy by incorporating other kinds of protection that are not part of your basic plan. Adding riders to your policy gives you a more comprehensive package to help take care of your need for extra security for a minimal cost.

Below are common examples of riders that you can add to your life insurance policy. You can use the information to plan how you can maximize your insurance benefits.

1. Accidental and Health Rider - An accidental and health rider can help cushion the impact of an accident, or medical-related expenses. With this rider, you have less to worry about in case you need hospitalization because you fell ill, sustained an injury, or developed a disability. You can use your policy’s accidental and health rider to fund any related expenses and help you recover from your condition.
   
   
2. Early-Stage Critical Illness Rider - Should you be diagnosed with critical illnesses like cancer, heart attack, stroke, and the like, an early-stage critical illness rider can offer valuable financial coverage. As part of the benefits of your early-stage critical illness rider, you will receive a one-time payout that you can use to cover your treatments, saving you from piles of medical bills and helping you live longer.
   
   The lump-sum assistance that comes with this rider will then be deducted from the amount of death benefit that your beneficiary will receive.
   
   
3. Enhanced Critical Illness Rider - Similar to early-stage critical illness, this rider entitles you to a lump-sum payment in case you’ve been diagnosed with a life-threatening medical condition.
   
   However, you need to meet certain prerequisites to receive the one-time benefit of your enhanced critical illness rider, including the age limit requirement, which is below 75 years old. Plus, you need to ensure that your illness has coverage under your policy’s rider.
   
   
4. Waiver of Premium Rider - Depending on your type of insurance, you may pay the premium upfront or over a term of 5 to 30 years. Suppose you choose the latter option, also called term life insurance, you’ll be paying premiums regularly over a number of years.
   
   By availing the waiver of premium rider, you will no longer be required to make payments in case you unexpectedly become sick, injured, or disabled. Your life insurance premium will already be considered paid, and you may even receive compensation for your condition as long as your policy covers it.
   
   
5. Hospitalization Rider - Sometimes, your health will fail you, and you need to be hospitalized. If you were not able to plan for this kind of medical emergency, you might be forced to dip into your savings or, worse, take out loans to pay for hospital bills. A rider that provides hospitalization coverage can prevent you from resorting to these less-than-ideal options as it offers cash benefits. 
   
   
6. Accelerated Death Benefit Rider - The idea behind the accelerated death benefit (ADB) rider is to provide you with financial resources once you’re diagnosed with a terminal illness in which you only have a few months to live. ADB may or may not be free with your base life insurance policy, so be sure to discuss the terms with your provider.
   
   Just like riders with benefits for critical illness, your insurance company may deduct a certain percentage of the death benefit from your policy to help you with end-of-life care expenses.  Perhaps you need to hire a private nurse or caregiver, or you want to spend the remaining time of your life in a nursing home with specialized medical care, facilities, or amenities.
   
   As long as your doctor can confirm that you are terminally ill, you can be eligible for an early payout of your death benefit. 
   
   
7. Guaranteed Insurability Rider - The business side of life insurance requires you to undergo medical checkups so that the provider can determine the price of your insurance premium. It also shows how risky it is for them to insure you based on various factors such as age, lifestyle, family medical history, and so on.
   
   What the guaranteed insurability rider offers is the freedom for you to get additional insurance coverage regardless of qualifications. Therefore, even if you have had a change in your life or health status, you can still apply for extra coverage without having to prove your insurability.
   
   Then, if you want to renew your life insurance policy upon maturity, you can do so without a medical exam.

Maximum Protection with Life Insurance Riders

Sometimes, more can be better, especially when it comes to certain life decisions. Insurance riders maximize the benefits you can receive by allowing you to anticipate life’s challenges and making your policy more attuned to them.

BPI AIA offers a wide range of life insurance riders for all your needs. Consult a BPI Bancassurance Sales Executive for advice on specific riders that will be most beneficial in your situation.