Health insurance is an insurance policy that hedges the risk of spending on huge medical expenses. After getting an estimation of overall medical expenses, a policyholder can plan out his options of paying out the premiums in a periodical way and also the premium amount. Generally the risk cover in such polices have a maximum limit which is ascertained by the amount of premium paid.
What are riders in insurance world ?
Riders are add-ons or modification, an added policy feature that can be done at the time of purchasing an insurance policy. These riders basically help provide some features that could be desired by the policyholder himself. A combination of set riders can be added to the main policy. The premium gets raised as more & more riders in combinations are chosen.
Types of Riders in health insurance:
1. Accidental death; otherwise called ‘Double Indemnity’, in which double the amount can be availed in case of death during accidents, as in this case, the life cover as well as accident death policy were both effective.
2. Premium waiver; that helps in getting the future premium that to be paid, waived if the policyholder becomes disabled.
3. Joint life Insurance; could be a specific term or permanent policy providing life cover to two or more individuals & the assured sum is payable on first or second death.
4. Survivorship Life; a life policy in which two lives are covered & sum assured is payable on the second or later death.
5. Single premium whole life; it is a policy in which only one premium is payable & that too at the time of issue of the policy.
6. Modified whole life; the premium are paid in smaller amounts for a certain term & afterwards premium amounts are increased for rest of the period of the policy.
7. Group life Insurance; as the name itself suggests, the insurance gives a life cover for a group of people rather than individuals. Usually it’s being taken in a company by its employees or the employer takes it on their behalf. Other groups can be member of an association or union. Also any individual in such group has the right to exit & buy his own insurance coverage individually.
8. Senior & preened products; these products are for a niche segment such as old age or aging population. The policies are altered as per the need of senior or old age people. These are basically a little cheap to buy, giving the old people a window of affordability for their not so long life.
9. Prepaid or preened insurance policies; available for all age group but usually marketed to old age group. They give a cover for the expenses at the funerals at the time of death of the policyholder
10. Critical illness benefit; if the policyholder suffers from any listed disease by the company, he is compensated.
Though riders in health insurance are still at a minimal stage when it comes to Indian context yet the changing scenario in the country has changed a lot the mindset of an Indian. Today people have become more sophisticated, more aware of their whereabouts and also have started taking precautions at each step of their lives. People today in India are more adept to the changing environment & pertaining to grow outbound with a greater effect. With having a vision like this, what we called ‘the change’ is inevitable & by adjusting with it, mankind here today is taking a big leap to make its hold stronger in the coming scenario.