Rider
Also called Insurance rider, add-on cover
An optional add-on to an insurance policy that gives an extra benefit, such as accident or critical illness cover, for an extra premium.
A rider is an add-on to an insurance policy. You pay a little more premium, and the policy pays an extra benefit when a listed event happens, such as an accident or a serious illness. It sits on top of a base policy, usually a term insurance plan, and ends when that policy ends. Read how they work, and when a separate policy may suit better, in term insurance riders explained.
Questions people ask
What is a rider in insurance?
A rider is an optional extra you attach to a base policy, such as a term plan, for an additional premium. It pays a benefit the base policy doesn't, for example an extra sum on accidental death or a lump sum on a critical illness diagnosis. It can't be bought on its own.
Is there a limit on how much riders can cost?
Yes. IRDAI's 2024 master circular on life insurance products says premiums for health and critical illness riders can't exceed 100% of the base policy premium, and all other riders together can't exceed 30% of it.
Does a rider end when the base policy ends?
Yes. A rider is attached to the base policy, so it can't run past the base policy's term. If the base policy lapses or is surrendered, the rider usually stops with it.
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