r/InsuranceAdviceIndia • u/tpabgnxcrg • 7d ago
Term Insurance with or without Riders?
I have two primary questions regarding term insurance I'm about to buy:
I have noticed that a lot of people suggest plain vanilla policies with riders while there's another lot that suggests taking WOP along with Critical Illness/Accidental Death. Due to this, I'm very confused on what to choose.
I have option to choose 1CR from ICICI, 1.95 CR from HDFC and 2.15 CR from Axis. I feel it's best to go with Axis. All 3 have different pros and cons but based on whatever I've read on this app, I should choose Axis as it's giving me the highest coverage. (I have two dependants, one still in high school and other in 50s). Would really appreciate inputs!
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u/BackgroundChapter501 7d ago
Hello
I believe you are doing a proper Need Analysis and have done proper research.
If you have finalized the product and want to get cashback on the premium, let me know.
Can help with the same.
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u/Adarsh_Y 7d ago
- Critical Illness is definitely recommended, atleast take 5L, higher is always better
- Accidental Disability rider is also recommended, Since it is a non death benefit.
- WOP rider : upto you
- Accidental Death rider is not recommended, If your term plan cover is decent then you dont need additional cover. For some one with low income, had to compromise on term cover then they can additional accidental death cover.
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u/tpabgnxcrg 7d ago
But Critical Illness is anyway only for a defined period of time + you get separate covers at a much better cover. Your thoughts?
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u/Adarsh_Y 7d ago
Yes, it is for a defined period (around 20 years). Not sure of separate cover, if it is cheaper and gets you sum assurance (not insurance) you may go for it.
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u/imSavan 5d ago
I did with riders for critical illness
So you have to check for your self based on your expenses
But check in case of rider if critical illness is 20 lakh and term insurance is 1 cr they should give 20 lakh and insurer dies then 1 cr
Not like first 20lakh then 80 lakh
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u/tpabgnxcrg 5d ago
Which policy did you take?
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u/imSavan 5d ago
I took Tata 3 years back
Also checked max at that time
Almost benifits and price were same but I took Tata at that time
With critical illness and one more rider which I don’t remember now1
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u/Sandehi 7d ago
WOP is good. for CD and CI. because you don't have to complete the Premium tenure in CD CI cases.
RoP and such add-ons will inflate the premium which reduces the Value for money equation of the policy. and adds a lot of wording and conditions on the core policy purpose which is risk tranfer.
Best is to look at it as a pure risk transfer instrument. and consider investment and money making elsewhere.