Why do you need Health Insurance Riders?

Health insurance riders offer the extra benefit at some extra cost. Confused if you should buy health insurance riders? Here is a helping hand. Read on for details.

18 Nov,2019 09:45 IST 670
Why do you need Health Insurance Riders?

The concept of health insurance riders is similar to getting some extra toppings on your pizza. Since you need to pay extra money for some additional toppings likewise, there is an extra charge over a regular premium to get additional coverage. In simple terms, health insurance riders offer the extra benefit at some extra cost.

Following are some top health insurance riders and their advantages:

Rider Advantage
Room Rent Waiver Many insurance companies have a cap on the room rent.
This rider provides the benefit of choosing the room of your liking without any extra charge at the time of hospitalisation.
Personal Accident Rider It offers coverage for all kinds of accidents which incorporate accidental death, permanent disablement etc.
Also, the family of the policyholder is entitled to twice the amount of the policy if the insured dies in an accident.
Critical Illness Cover It covers medical expenses for the illness which are critical in nature like cancer, heart attack, brain damage etc.
This rider offers an instant lump sum to the insured person regardless of what the total expenses of the medical treatment are.
Maternity Cover It covers all expenses incurred during the childbirth. However, this rider can only be availed after the waiting period has passed,
which can be 24 months or more depending on the insurance providers. While some insurance companies also provide coverage to the newborn child till the maturity period.
Hospital Cash It offers daily cash allowance to the insured which may assist him to take care of other medical expenses during hospitalisation.

Is there a necessity to buy these health insurance riders?

It is of utmost importance for an individual to identify if he really needs a health insurance rider since it comes at an added cost. If one considers buying all the health insurance riders, the premium will shoot up. It might also lead to the possibility of default on his premiums at some point. Hence, a person needs to be very cautious with the rider he chooses.

Choose a suitable rider in-line with your need. For instance:

· A maternity cover would be appropriate for a young couple planning to start a family in a couple of years. Conversely, it won’t be suitable for a couple who have crossed the age of 50.
· A personal accident cover best suits an individual who travels more often for business purpose or pleasure.
· A critical illness cover can be bought by a family having a history of critical illness in the past.


Surely a health insurance rider has its own advantages but choosing an appropriate one is important. It is better to analyse which rider suits your needs and incorporate only that rider in your plan to keep premiums under control.

Click here to read about varied types of health insurance plans

Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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