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5 Different Insurance Plans or 1 Plan with 4 Add-ons?

In a world of smart devices, insurance plans are getting smart too!

Not to be left behind in the age of technology, insurers and their aggregators have begun using new-age tools and the online medium to heavily promote insurance plans. However, there is more than just the mode of doing business that is getting modernised in the Insurance industry. We are, of course, speaking about the add-ons (aka riders) that accompany plans these days.

Let’s give the reader some background information first:

  • Traditional life insurance policies do not cover your expenses in case of critical illnesses like cancer
  • Many health insurance plans do not cover maternity expenses

The above list is pretty long.

So, realizing that there were gaps in the traditional plans, and also realizing that the insurance buyer of the 21st century is more aware and more knowledgeable than earlier, insurance companies have begun preparing smarter insurance packages that cover several circumstances in a single plan while delivering the same security and trustworthiness as before. These come in the form of add-ons or riders.

Gyan Box

Riders are optional additional benefits that can be included to traditional insurance plans. These add-ons expand your insurance coverage as per your specific needs at a lower cost.

For example, without revealing brand names, we can look at some of these dynamic plans that take into consideration that each person’s needs are unique and allows customizations to traditional insurance plans:

  • Some of the better health insurance plans out there cover expenses arising out of critical illness and personal accident scenarios as well, which are not offered with usual plans.
  • Along the same lines, new-age term insurance plans come with riders that cover you in case of personal accident resulting in death, personal accident resulting in total/partial disabilities, critical illnesses, and so on.

Your next question might be about the costs. Well, there is good news there too.

Gyan Box

The Insurance Regulatory and Development Authority of India (IRDAI) has capped premium on riders at 30% of the basic insurance policy’s cost.

So, to answer the question in the title, it’s a simple decision – one insurance plan with relevant riders is mostly going be a win-win scenario for you. You not only get customized benefits but you also pay far lesser than when you own 5 plans and pay 5 different premiums for them.

Note, however, that you’re advised to go for a separate insurance policy instead of a rider in few instances. For example, the lump sum amount offered under a critical illness rider may not be enough for your expenses whereas the pay-out under a standalone critical illness policy may suffice. So, keep the expected expenses in mind and then make a decision.

To learn more about the best riders out there and to get advice on what add-ons can be attached to your present policy (if possible), feel free to get in touch with our experts at 86559-86559 or use to get in touch through email.

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