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Today I am going to enlighten you on different types of sleeping positions Riders.

Hey…. I am not talking about ghost rider, motor rider aka mat rempit, knight rider, line rider, easy rider, kamen rider, kart rider, or so on…

Don’t imagine things…Okay?

I am going to discuss with you here “Riders” in the insurance context.

Riders in the insurance context are additional benefits that complement a basic contract between the insurer and the insured.

You get a “rider” when you feel that your insurance coverage from your basic contract is inadequate or you feel that you need extra protection.

There are a lot of different types of Riders in the market.

I used this formula to remember them.

(TECHWATGPA)

TPD Rider
Extended TPD Rider
Critical Illness Rider
Hospital Cash Rider
Waiver Of Premium Rider
Accidental Death Benefit Rider
Term Rider
Guaranteed Insurability Option Rider
Payor Benefit Rider
Accidental Death and Dismemberment Benefit

1. TPD Rider

TPD Rider is usually available as an integral part of a life insurance policy.The death benefits are paid in instalments.When the first annual instalment payment starts, all other riders are terminated except Extended Total & Permanent Disability Benefit Rider.
2. Extended TPD Rider

(ETPD)Extended TPD Rider may expire one year earlier than the TPD Rider.

3. Critical Illness Rider

This is also known as Dread Disease Rider.Lump sum is to be paid to the insured in the event he is diagnosed one of the following covered illness.

It can be attached to Whole life, endowment, term insurance and investment linked life insurance policies. There are 2 types of critical illness rider

1) Acceleration Benefit Critical Illness Rider

Example: A person with $200,000 Whole Life Policy with 50% Acceleration Benefit Critical Illness Rider.

If he met with critical illness, he will get a prepayment of $100,000.

Upon death or TPD, the remaining $100,000 will be remitted back to him or his nominees.

2) Additional Benefit Critical Illness Rider

Example: A person with $100,000 Whole Life Policy with $200,000 critical illness rider.

If he met with critical illness, he will get a payment of $200,000.

Upon death or TPD, the $100,000 will be remitted to him or his nominees.

4. Hospital Cash Rider

This rider provides a fixed benefit (e.g. $100 per day) based on the period of hospital confinement.

Most of these riders cover hospitalization as a result of both sickness and accident.

5. Waiver Of Premium Rider

This waiver of premium rider is one of the most common riders attached to a life insurance policy.

Basically, what this rider does/offers is to keep a policy in force in the event that the insured is not able to pay the premiums when he is totally and permanently disabled or is suffering from one of the critical illness covered under his policy.

6. Accidental Death Benefit Rider

Accidental Death Benefit Rider provides for the payment of an amount in addition to the basic sum assured should the insured die as a result of an accident.

The amount paid by an accidental death benefit rider is usually the same as the basic sum assured and is, therefore, often referred to as double indemnity.

It could however, be three or more times the basic sum assured. Whatever, the amount, this additional amount is paid only when the insured dies from an accident.

7. Term Rider

A term rider is a term policy attached to a permanent policy.

It cannot be attached to a Term Policy.

The amount of term rider coverage is usually expressed as a ratio of the sum assured of the basic plan e.g. 3 to 1 or 5 to 1 depending on the practice of the insurer.

As a 3-1 ratio, a $100,000 Whole Life policy could have a term rider up to a maximum of $300,000.

8. Guaranteed Insurability Option Rider

The Guaranteed Insurability Option Rider is not an insurance cover but a right to purchase additional amounts of insurance at a specified intervals over an extended period of time without evidence of insurability.

9. Payor Benefit Rider

This rider provides that if the person (usually the parent) who is paying the premiums on the child policy dies or become disabled before the child (insured) has reached a specified age (usually either 21 or 25 years old), the insurer will waive all further premiums until the child reaches that age.

10. Accidental Death And Dismemberment Rider

This is basically an Accidental Death Benefit rider with the added protection
against loss of limbs, speech, hearing , thumb and the sight of eyes, etc.

These are basically the common riders that you will hear from your financial advisors/consultants. You do not have to worry of which one to add. They will choose for you according to your needs.

Stay happy!

My other related posts that may interest you:

• Vivolife : NTUC Income Limited Premium Insurance Policy
• NTUC Income Vivolife
• Term or Whole Life Insurance? Which Is Better?