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Insurance riders help to take additional cover against specific risk at low cost on a basic insurance plan. Here is a list of riders you need and those which can be done without.
HEALTH INSURANCE
Assuming base plan sum assured is Rs 5 lakh and base premium is Rs 5,500-7,000.
WHAT YOU MUST HAVE
| Description | Premium | |
| Hospital cash | This rider offers daily cash (Rs 500-3,000) to meet medical and nonmedical expenses in the event of hospitalization. Payout is more for ICU stay, but is for fewer days. | Rs 1,100 for a cover of Rs 2,500 per day for 30 days, and Rs 1,800 for a Rs 2,500 cover per day for 60 days over base premium. |
| Room rent waiver | Allows a higher sub-limit or rooms without sub-limits in case of hospitalisation. This rider helps you opt for a better room without it eating into your sum insured. The other option is to buy health policies that have no cap on room charges. | PREMIUM: Rs 700-1,000 more on the base plan premium. |
WHAT YOU CAN SKIP
| Description | Premium | |
| Surgical benefit | Covers 500 different surgeries. Not required if you have a comprehensive health cover. | Rs 3,000-4,000 for a Rs 5 lakh added cover. |
| OPD | Available as add-on with health insurance plans and pays for expenses incurred as an out-patient without hospitalisation. | Almost Rs 15,000 for a sum assured of Rs 5 lakh (inclusive of base plan premium as OPD is an add-on cover). |
| Maternity | An expensive add-on. Comes with a waiting period of four to six years. A better alternative is relying on employer-provided group cover or setting aside a corpus. | Rs 8,000-9,000 (inclusive of base premium) with add-on restricted to 10% for normal delivery and 20% for C-Section. |
LIFE INSURANCE
WHAT YOU MUST HAVE
| DESCRIPTION | PREMIUM | |
| Critical illness | A one-time lump sum is paid to substitute loss of income due to a critical illness. Covers 10 to 15 illnesses, not including pre-existing diseases. Includes a 30-day survival clause. | Rs 5,500-6,500 for an assured benefit of Rs 5 lakh. |
| Accidental death benefit | An amount over and above the death benefit is paid in the event of death due to an accident. If death occurs in a hospital, the money takes care of hospitalisation expenses. | Rs 6,500 for a Rs 50 lakh cover. |
| Accidental disability benefit | The rider may pay 100% of the sum assured in case of permanent disability. Only a portion of the assured sum is paid in case of partial or temporary disability. | Rs 5,500-6,000 a year for a Rs 50 lakh cover. |
| Waiver of premium | This is helpful in a child plan. In the event of the parent’s or policy proposer’s death or disability, future premiums are waived. | Rs 200-300 more on the base premium |
WHAT YOU CAN SKIP
| DESCRIPTION | PREMIUM | |
| Accelerated death benefit | Pays all or part of the benefit even before the insured’s death if certain conditions are met. It is beneficial for those who are terminally ill and want to use the money for treatment. | Rs 1,500-2,000 more over base plan premium. |
| Income protector | Provides death benefits and a monthly income (1% of sum assured per month) to beneficiary if insured dies before policy lapses. | Rs 1,000-1,500 more than base plan premium. |
With Inputs from ET Wealth
