term insurence with add on , most ? chatGPT
Based on the term insurance plans shown in the image, there are several add-ons or riders available that can be added to enhance the base term insurance policy. These riders provide additional coverage for specific risks or situations. Here are the commonly available riders, along with a brief explanation:
1. Accidental Death Benefit (ADB) Rider
- Provides an additional sum assured to the nominee in case of the policyholder's death due to an accident.
- Example: If the base cover is ₹2 crore and the accidental rider provides ₹50 lakh, the nominee receives ₹2.5 crore in case of accidental death.
2. Accidental Total and Permanent Disability (ATPD) Rider
- Offers financial assistance if the policyholder becomes permanently disabled due to an accident.
- Some policies waive future premiums while keeping the base coverage intact.
3. Critical Illness (CI) Rider
- Covers critical illnesses like cancer, heart attack, kidney failure, etc.
- A lump sum is paid on the diagnosis of a covered illness, irrespective of medical expenses or ongoing treatment.
4. Waiver of Premium (WOP) Rider
- Waives future premiums if the policyholder is unable to pay due to critical illness or permanent disability.
- Ensures the policy remains active without burdening the insured.
5. Income Benefit Rider
- Provides a monthly income to the nominee for a fixed period after the policyholder’s death.
- Ideal for families who depend on the policyholder’s income for regular expenses.
6. Early Payout for Terminal Illness
- Pays a portion of the sum assured in advance if the policyholder is diagnosed with a terminal illness.
- Helps with immediate medical and personal expenses.
7. Return of Premium (ROP)
- Refunds the premiums paid (excluding GST and rider costs) if the policyholder survives the policy term.
- Adds to the cost but provides a saving-like benefit.
Most Commonly Opted Add-ons
- Accidental Death Benefit (ADB): Popular for providing an enhanced safety net for families.
- Waiver of Premium (WOP): Often chosen to ensure the policy doesn’t lapse in case of financial constraints.
- Critical Illness (CI): Favored by individuals who want coverage for lifestyle-related diseases.
- Early Payout for Terminal Illness: Practical and affordable for terminal illness coverage.
Base + Add-On Strategy
Most people opt for a combination of the base policy and a few essential riders, balancing affordability and comprehensive coverage. For instance:
- Base Cover: ₹2 crore or ₹4 crore (as shown in your image).
- Add-ons Chosen: ADB, WOP, and CI (as they provide significant value for the premium increase).
Would you like a detailed comparison of premiums with and without add-ons, or guidance on how to select the best combination for your needs?