Your guide for the right insurance riders
Insurance policy riders are efficient enhancers for your base policy. A rider is an add-on provision to insurance policies and it offers extra benefits in the form of additional coverage. Many insurers today offer rider customisation at additional premium.
But why do you even need a rider? It is because most policies come with standard coverage, which takes care of basic damage and loss to your property, other assets or health. However, it may not cover specific cases, for example, burglary or cancer care. In such cases, add-ons or policy riders come to your rescue, providing enhanced and more specific coverage.
Before you choose a policy with riders, here are 5 things you must keep in mind:
- Get Cover Only for Relevant Risks
The number of riders in the market is enticing; don’t be swayed. All-you-can-have buffet of riders is hardly a good way to go. If you purchase a rider that is irrelevant to you, you might end up paying higher premiums without benefitting from it.
The trick is to identify why you need the policy in the first place. Assess risks that you or your assets are prone to, before opting for a cover.
- Look out for Excess in Your Rider
Riders sometimes feature an excess. Excess is the amount of risk you will accept in case of a claim. It is basically you sharing the risk with your insurer for a claim.
Always read your policy document for such charges and sub-limits. Every policy is different and you will need to be careful that the rider you buy doesn't end up costing a lot more than what you bargained for. As a thumb rule, lower the amount of excess, higher the insurance costs.
- Enhance Policy Customisation
One of the benefits of riders is that it is customisable. It allows you to choose your basic policy and tailor them as per your unique needs. At times, these policies are much more efficient than a blanket insurance policy.
- Easy to Buy
Riders are generally opted for at the time of policy purchase. But they can be bought even during the policy period. Many insurers today allow online purchase of add-ons. All you have to do is submit the soft copy of the necessary documents and fill the policy form with accurate details.
- Cover Variety of Risks
Every reliable insurer has an efficient range of riders to help you make the most of your policy. Riders like accident, disability and hospital cash benefit are some of the popular ones. Motor riders like road side assistance (RSA) are useful for vehicle owners. Before attaching a particular rider to your policy, make sure that you understand the scope and coverage.
Knowledge is key to buying insurance. Know what your policy offers and the various components associated with it to make the most of your policy without paying unnecessary premium amounts.