When most people choose to buy a particular term plan, they think the hard part is done. But soon after, they’re introduced to something else: the add-ons. It usually starts with a simple suggestion, “Would you like to include a rider?” Suddenly, you’re back in decision mode, unsure of what to pick and what to pass.
This blog goes back to that moment. Not to confuse you more, but to help you see it clearly—what actually matters and what you can comfortably skip.
What do add-ons mean in a term insurance plan?
Add-ons, also called riders, are optional benefits you can attach to your term insurance plan for extra coverage. While the basic plan covers life protection, these add-ons are meant to address specific needs. They help customise the policy to suit your needs better, offering financial support in situations that go beyond a standard life cover.
Advantages of add-ons
More Affordable Than Separate Policies
Add-ons are cost-effective because you're not paying for a completely separate insurance plan. For example, a critical illness rider added to your term plan will usually cost less than a standalone critical illness policy. You get the extra protection you need without significantly increasing your overall premium outgo.
One Policy, One Process
Managing multiple insurance plans can get tedious, especially when each one comes with its own set of documents, renewal dates and medical requirements. With riders, everything is linked to your existing term plan. There’s no need for additional paperwork, fresh medical tests or tracking multiple premium payments. It simplifies your insurance management.
Some Benefits Are Only Available as Add-Ons
Certain benefits are not available as standalone plans in most cases. You can only access them as riders when you buy or update your term insurance. So, if these are features you value, adding them to your existing policy is the only way to get them.
Important term plan add-ons
● Critical Illness
This rider provides a lump sum payout if you're diagnosed with a serious illness listed in the policy, such as cancer, heart attack, stroke or kidney failure. The money is paid regardless of hospital bills or actual treatment costs. It’s meant to help you cover medical expenses, loss of income during recovery or make lifestyle changes if needed. The rider ensures that a health crisis doesn’t turn into a financial one.
● Accidental Death
If the policyholder dies due to an accident, this rider ensures an additional sum is paid over and above the base sum assured. For instance, if your term plan has a cover of Rs. 1 Crore and you’ve opted for an accidental death rider of Rs. 25 Lakh, your nominee would receive Rs. 1.25 Crore in case of accidental death. This is especially helpful for people with high travel risk or jobs that involve physical hazards.
● Waiver of Premium
This rider waives off all future premiums if the policyholder becomes permanently disabled or critically ill and is unable to earn. The life cover continues as usual, but you’re no longer required to pay future premiums. It ensures that financial protection remains intact, even if your income stops due to unforeseen health issues. This rider is useful for long-term financial stability when cash flow is affected.
Should you opt for every add-on?
Not necessarily. It depends on your lifestyle, existing coverage, health history and financial goals. Riders are meant to personalise your term plan, not complicate it. Picking all of them might lead to higher premiums without adding real value.
For instance, if you're 32, working from home and already have a Rs. 20 Lakh health insurance plan that covers major illnesses, adding a hospital cash or critical illness rider to your term plan may not be needed. But a waiver of premium rider could still be useful—it could keep your term plan active even if you can’t pay due to illness or disability. The key is to choose what truly fits your situation.
The bottom line
Before finalising your term plan and riders, take a step back and look at the bigger picture. Check how much each add-on affects your overall premium and whether it gives you real value. Sometimes, what sounds useful on paper may not fit your life in practice. It’s also wise to compare different policies from various insurers to see which one offers the best combination of base cover and rider benefits. To make this easier, you can use a term insurance plan calculator to estimate your premium and customise your plan based on your needs and budget. Choose smart, not more.
Disclaimer: This article is published in association with Canara HSBC Life and not created by TNM Editorial.