Claim Settlement Ratio of 99.23%~

Rider Benefits under Term Insurance

Term insurance plans offer a range of riders which help in enhancing the scope of the policy during the coverage tenure. Riders are additional coverage features which are available on an optional basis. You can choose to add the riders at nominal extra cost either when buying the policy or on any policy anniversary to get increased coverage against different types of contingencies.

Investment plans also act as tax-planning tools, as many avenues help reduce tax liability. There are different types of investment plans, and by choosing the right one, you can invest according to your needs and grow your savings.Read Less

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Written ByPalak Bagadia
AboutPalak Bagadia
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Palak Bagadia, Associate – Digital Marketing at Bajaj Allianz Life, with experience spanning content and performance marketing, recruitment, employee engagement in the BFSI industry.
Reviewed ByRituraj Singh
AboutRituraj Singh
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Rituraj Singh,With over 6.5 years of experience in the insurance industry, Rituraj Singh, Manager- Product & Brand Marketing at Bajaj Allianz Life Insurance overlooks new product launches, compliance, and brand projects, leveraging artificial intelligence and technology to enhance outcomes.
Written on: 7th July 2024
Modified on: 7th July 2024
Reading Time: 15 Mins

Some term plans also have inbuilt riders wherein riders are built into the scope of the policy. You don’t have to choose the riders individually and the premium is inclusive of the riders added under the plan.


Types of Riders Available with Term Insurance

Some of the different types of riders available with term insurance plans are as follows1

Types of riders How does the rider work? Benefits of the rider

Accidental death benefits rider

The rider covers accidental death occurring during the policy tenure. If the life assured passes away in an accident, the rider's sum assured is paid along with the death benefit under the terms plan, as per policy terms and conditions.

  • Additional protection against accidental deaths
  • Adds another layer of financial protection

Waiver of Premium rider

Under this rider, the future premiums for the policy are waived if the policyholder or life assured  becomes disabled or suffers from a critical illness during the tenure and is unable to pay future premiums. The condition of the rider being activated depends on the policy you choose and may vary from insurer to insurer.   

  • While the premium is waived, the policy continues. The insurance company pays the premium on the policyholder’s/assured’s behalf
  • The rider takes away the premium burden from the policyholder’s shoulders in uneventful cases

Critical illness rider

The rider covers specified listed critical illnesses. If the life assured actually suffers from any of the covered illnesses during the rider tenure, the sum assured under the rider is paid

  • Provides added coverage against major illnesses
  • The benefit received can be used for any financial obligation

Family income benefit rider

Under this rider, a percentage of sum assured is paid to the nominee(s) if the life assured   passes away during the tenure 

  • Replace the lost income for the family in your absence
  • Regular incomes can help the family meet their lifestyle expenses


Reasons You Need a Rider in Term Insurance


There are many benefits of adding riders ito term insurance. However, some of the common benefits which make choosing riders a good choice are as follows –

1. Added protection

One of the primary rider benefits is the added protection that it provides. Whichever rider you choose; you get an added layer of protection against unforeseen eventualities which might cause a financial loss.

2. Coverage for contingencies other than death

While the term plan covers the risk of premature demise, the riders can provide coverage against medical emergencies, critical illnesses and disabilities. They pay a benefit in any of these contingencies (depending on which rider you choose) and extend financial assistance when you need it the most.

3. Minimal premium

Riders are very cost-effective. The rider premium is low making it affordable. You can enjoy a high rider sum assured at low additional premiums on the base plan so that your coverage is enhanced without burning your pockets.

4. Tax benefits

The rider premiums are clubbed with your term insurance premium and allowed as a deduction under Section 80C of the Income Tax Act, 1961 up to Rs.1.5 lakhs2 subject to the terms and conditions stated therein. This is available for term insurance riders like accidental death riders, accidental death and disablement riders and any other rider which does not offer health insurance-related coverage2. For riders like critical illness riders, hospitalisation coverage riders, terminal illness riders, and others who provide health-related cover, the rider premium is allowed as a deduction under Section 80D up to Rs.25,000 if you are below 60 and Rs.50,000 if you are a senior citizen2.Above benefits are available only under old regime of Tax.


The Process of Buying Term Insurance Riders


You can choose to buy term insurance riders with your base policy when buying the base policy. Many policies also allow you to add the rider to the coverage during renewals. You can buy the riders online or offline depending on your suitability.


Bajaj Allianz Life Term Insurance Riders


Bajaj Allianz Life Insurance offers a range of riders with its term insurance plans. These riders are as follows –

Rider offered Coverage
Bajaj Allianz Accidental Death Benefit Rider The rider covers accidental deaths occurring during the policy tenure. If the insured dies in an accident, the sum assured of the rider is paid.
Bajaj Allianz Accidental Permanent Total or Partial Disability Benefit Rider This rider covers permanent total or partial disabilities suffered in an accident during the policy tenure. If the insured suffers from either of the contingencies, a lump sum rider benefit is paid.
Bajaj Allianz Waiver of Premium Benefit Rider This rider waives the premium if any of the following contingencies occur –
  • Death
  • Accidental permanent and total disability
  • 11 specified critical illnesses
Bajaj Allianz Family Income Benefit Rider In case of  death of the life assured early on or due to an accidental disability, this rider provides the benefit of 1% of the rider sum assured, payable monthly for the remaining rider term or 10 years whichever is higher.




Choose suitable riders with your term insurance plan and enjoy the benefits of added coverage, enhanced financial security and tax benefits at minimal premiums. You can cover other contingencies too and get complete peace of mind with an inclusive scope of coverage. So, assess your coverage needs and then make your term plan comprehensive with the necessary riders.




1. Is there a medical examination required to add a rider to my term policy?

Usually, no medical examination is needed to add a rider to your term policy. However, in some cases, a medical examination might be needed by the insurer before the rider coverage is granted.

2. Can I convert a term insurance rider into a permanent policy later on?

Usually, a rider cannot be converted into a permanent term insurance policy. It is added to the basic policy and runs till the base policy runs or till the tenure of the rider. You cannot buy the rider separately.





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~Tax benefits as per prevailing Income tax laws shall apply. Please check with your tax consultant for eligibility.

Tax benefits as per prevailing Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

The above information is for general understanding and is meant to educate the general public at large. The reader will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information. 


*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

Terms & Conditions

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business


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%%Above illustration is for Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V03) considering Male aged 25 years | Non-Smoker | Policy Term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 1,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 6,238. 2nd Year onwards premium is Rs. 6,659. Total Premium Paid is Rs. 1,99,349 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly installments (Lumpsum Payout Percentage : 45, Income Payout Percentage : 55) | Premium shown above is exclusive of Goods & Service Tax/any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only. This is inclusive of all the discounts mentioned above.

##Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

@Term Insurance plan bought online directly from Bajaj Allianz Life Insurance has no commissions involved.

^^The Return of Premium amount is total of all the premiums received, exclusive of extra premium, rider premium and GST & /any other applicable tax levied, subject to changes in tax laws
Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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