ULIP Riders Protection

Secure your future with ULIP Riders Protection, offering additional benefits like accidental cover, critical illness, and premium waivers.
Check Life Insurance Policies
3 min
20-May-2025
Unit-Linked Insurance Plans (ULIPs) are a popular investment and insurance option in India. While they offer market-linked returns, ULIP riders provide extra security by covering specific risks. These optional add-ons enhance policy coverage at a marginal cost.

Riders like critical illness, accidental death, waiver of premium, and income benefits ensure long-term financial stability. They help policyholders manage unexpected medical expenses, protect dependents, and secure a steady income in case of emergencies.

Choosing the right ULIP rider requires understanding individual needs, coverage options, and premium costs. Since each insurer offers different rider benefits, comparing plans ensures maximum value. By integrating the right rider, policyholders can optimise financial protection while building wealth.

What is ULIP riders protection?

ULIP riders protection refers to optional add-ons that enhance a ULIP policy’s coverage by providing extra financial benefits in case of illness, disability, or death. These riders act as a safety net, ensuring the policyholder or their family is financially secure during crises. Here are a few key features of ULIP riders protection:

Critical illness rider

Provides a lump sum payout if diagnosed with life-threatening diseases like cancer or heart attack.

Accidental death cover

Pays an extra sum assured if the policyholder dies in an accident.

Waiver of premium rider

Ensures future ULIP premiums are waived if the insured suffers permanent disability or critical illness.

Income benefit rider

Guarantees regular income to the family in case of the policyholder’s demise.

These riders enhance policy value and offer cost-effective financial security, making them a smart addition to a ULIP policy.

Benefits of ULIP riders protection

Adding riders to a ULIP policy offers multiple benefits, ensuring financial stability during unexpected events. Here are a few key benefits:

Enhanced coverage

Riders extend a ULIP’s benefits by offering financial protection against illness, disability, or death.

Cost-effective

Riders are cheaper than purchasing a separate insurance policy for each risk.

Tax benefits

Premiums paid for ULIP riders qualify for tax deductions under Section 80C and 80D.

Premium waiver

Ensures policy continuity by waiving future premiums in case of disability or critical illness.

Income support

Some riders provide monthly payouts to dependents, ensuring financial security.

Customisable protection

Policyholders can choose riders based on personal financial goals and risks.

ULIP riders increase overall protection and ensure peace of mind while helping policyholders achieve long-term financial goals.

How to choose the right ULIP riders?

Choosing the right ULIP riders involves assessing financial needs, understanding coverage options, and comparing policy costs.

FactorDetails
Life stage and dependentsChoose riders based on age, family needs, and financial commitments.
Coverage benefitsEvaluate if the rider provides adequate protection for risks like illness, disability, or income loss.
Premium affordabilityEnsure the added premium cost fits within your budget.
Tax savingsCheck if the rider qualifies for tax deductions under Sections 80C or 80D.
Policy flexibilityChoose riders that allow modifications based on future financial changes.


Comparing different ULIP plans and rider benefits ensures the right balance of investment and protection.

ULIP riders protection price and premium factors

The cost of ULIP riders depends on various factors that affect policy premiums. Understanding these factors helps in making an informed decision. Here are a few factors affecting ULIP rider costs:

Age of the policyholder

Younger individuals pay lower premiums compared to older applicants.

Health condition

Pre-existing illnesses or medical conditions increase rider costs.

Sum assured and coverage

Higher coverage levels result in higher premium costs.

Policy tenure

Riders for longer ULIP tenures usually have lower premium rates per year.

Type of rider

Critical illness riders tend to be more expensive than accidental death riders.

Assessing these factors ensures affordable premium payments while maximising ULIP benefits.

Conclusion

ULIP riders provide comprehensive financial protection by covering risks like critical illnesses, accidents, disability, and income loss. They are a cost-effective way to enhance ULIP benefits without purchasing separate policies.

Choosing the right ULIP rider involves understanding life stage needs, premium affordability, and tax benefits. Insurers offer different riders, so comparing features, costs, and exclusions helps in selecting the most suitable option.

Investing in ULIP riders ensures long-term financial stability, allowing policyholders to secure their family’s future while building wealth.

Frequently asked questions

What types of riders are available with ULIP plans?
ULIP plans offer riders like critical illness rider, accidental death cover rider, waiver of premium rider, and income benefit rider. These add-ons provide financial protection in case of medical emergencies, accidents, or loss of income. Riders enhance policy coverage while ensuring long-term financial security for the policyholder and dependents.

What is the critical illness rider in ULIP?
The critical illness rider offers a lump sum payout if the insured is diagnosed with severe conditions like cancer, heart attack, kidney failure, or stroke. This benefit helps cover treatment costs, hospitalisation expenses, and income loss during recovery. The policyholder does not have to wait for policy maturity, ensuring immediate financial relief for medical emergencies.

How does the accidental cover rider work?
The accidental cover rider provides an extra sum assured if the insured dies due to an accident. The nominee receives an additional payout over the base ULIP policy sum. This rider ensures greater financial security for dependents, covering funeral expenses, outstanding debts, and daily expenses, thereby minimising the financial impact of an unexpected loss.

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Disclaimer

*T&C Apply - Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Life Insurance Corporation of India (LIC), Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Company Limited, HDFC ERGO General Insurance Company, TATA AIG General Insurance Company Limited, ICICI Lombard General Insurance Company Limited, New India Assurance Limited, Chola MS General Insurance Company Limited, Zurich Kotak General Insurance Co. Limited , Star Health & Allied Insurance Co. Limited, Care Health Insurance Company Limited, Niva Bupa Health Insurance Company Limited , Aditya Birla Health Insurance Company Limited and Manipal Cigna Health Insurance Company Limitedunder the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors before proceeding to purchase an insurance product. Visitors are hereby informed that their information submitted on the website may also be shared with insurers. BFL is also a distributor of other third-party products from Assistance Services providers such as CPP Assistance Services Pvt. Ltd., Bajaj Finserv Health Ltd. etc. All product information such as premium, benefits, exclusions, sum insured, value added services, etc. are authentic and solely based on the information received from the respective insurance company or the respective Assistance service provider company.

Note – While we have made all efforts and taken utmost care in gathering precise information about the products, features, benefits, etc. However, BFL cannot be held liable for any direct or indirect damage/loss. We request our customers to conduct their research about these products and refer to the respective product’s sales brochures before concluding their sale.

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