Why Do You need Health Insurance Riders?

Nutan Gupta

11 Nov 2016

Health insurance riders are like some extra toppings you get on a pizza. But, you have to pay extra money for the additional toppings! Similarly, one needs to pay some extra money over the regular premium in order to get extra coverage. In simple words, health insurance riders provide you extra benefit at some extra cost.

What are the Top Health Insurance riders?

Rider Benefit
Room Rent Waiver A lot of insurance companies put a cap on the room rent. This rider lets you choose the room of your choice without paying any extra charges at the time of hospitalisation.
Personal Accident Rider This rider provides coverage for all kinds of accidents which include accidental death, permanent and temporary disablement. Moreover, if the insured dies in an accident, then the family of the policyholder is entitled to twice the amount of the policy.
Critical Illness Cover This rider covers medical expenses for any illness which is terminal/critical in nature like heart attack, cancer etc. This rider provides immediate lump sum to the insured no matter what the total amount total expenses of the medical treatment are.
Maternity Cover This rider provides coverage for expenses incurred during the birth of a child. However, this rider can be used only after the waiting period is over, which can be 24 months or more depending on the insurance company. Some insurance companies offer coverage to the new born child till the end of the maturity period.
Hospital Cash This rider provides a daily cash allowance to the policyholder which may be used by him for taking care of the hospital and other medical expenses in the event of hospitalisation. The insurance company pays the daily cash amount to the policyholder once during the complete tenure and it can be used for a certain number of days as specified in the insurance policy.

Are Health Insurance riders worth buying?

A health insurance rider comes at an added cost and it is very important for an individual to identify if he really needs the rider or not. If one ends up buying all the riders, the premium amount will shoot up, thereby causing an individual to default on his premiums. Hence, one needs to be very careful with the rider he chooses.

Know Which Health Insurance Rider Suits Your Needs...

  • A maternity cover would be suitable for a young couple who plans to start a family within a couple of years. On the other hand, this rider won’t be suitable for a couple who have crossed the age of 50.

  • A room rent waiver should be bought by a family who wish to opt for a higher room rent and doesn’t want a sub-limit on the coverage.

  • A personal accident cover is suitable for an individual who travels a lot for the purpose of work or pleasure.

  • A critical illness cover should be bought by a family who have a history of critical illness in the past

Choose a rider wisely and secure your health!


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mutual-fund

Why to Choose Mutual Funds Instead of Directly Investing Into Equities?

Whether to invest in equities or mutual funds is a question that has plagued every investor. As someone who needs the best value for his/her investment should you invest in equity directly or via mutual funds?

Let’s start by first understanding what these two terms ‘equities’ and ‘mutual funds’ stand for-

Equities- Equities generally represent ownership of a company. If you own any equity in a company, you are a part owner of the said company (depending on how much equity you own).

Mutual Funds – It is an investment scheme which is professionally managed by an asset management company. It pools together the resources of a group of people and invests their money in equities, debentures, bonds and other securities.

Why choose mutual funds over equities?

For people who’ve never invested in either stocks or mutual funds, it is hard to know which is better and where to start. Broadly speaking, if you are a novice investor, mutual funds are not only less risky but also way easier to manage. Here are some ways in which investing in mutual funds is beneficial as opposed to investing in equities -

Diversification

Mutual funds provide more diversification as compared to an individual equity stock. When you invest in equity, you are investing in a single company which has its inherent risk. For example, if you invest Rs.20,000 in buying equities of one company, you could face a total loss if that particular company performs poorly in the market.  

If you invest the same amount in mutual funds, it will be invested in different kinds of stocks and financial instruments, high-risk and low-risk both, so you might not face total loss even if one company does poorly.

Scale of Investment and Lower Costs

For an individual investor buying and selling stocks is a difficult task due to its high price. Thus, any gains made from stock appreciation are nullified if the overall trading costs are considered. Comparatively with mutual funds, as the money is pooled from a large number of investors, the cost per individual is lowered.  

Another advantage of mutual funds is that you don’t need to invest large sums of money. Buying equities for a profitable venture needs huge amounts of money, a minimum of few lakhs. With mutual funds, you can start with Rs.1000 and earn profits on that as well.

Convenience

Keeping an eye on the markets everyday is a time-consuming business, especially if you are investing as a side gig. There are people who spend their lives studying the market and still end up sustaining heavy losses. Though investing in mutual funds does not guarantee high returns, it is stress-free and needs less work as compared to investing in equities.

To sum it up

It is important to remember that mutual funds have their own disadvantages as well. Thus, as with any financial decision, educating yourself and understanding the suitability of all the available options is the ideal way to invest. 


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Why Do You need Health Insurance Riders?

Nutan Gupta

11 Nov 2016

Health insurance riders are like some extra toppings you get on a pizza. But, you have to pay extra money for the additional toppings! Similarly, one needs to pay some extra money over the regular premium in order to get extra coverage. In simple words, health insurance riders provide you extra benefit at some extra cost.

What are the Top Health Insurance riders?

Rider Benefit
Room Rent Waiver A lot of insurance companies put a cap on the room rent. This rider lets you choose the room of your choice without paying any extra charges at the time of hospitalisation.
Personal Accident Rider This rider provides coverage for all kinds of accidents which include accidental death, permanent and temporary disablement. Moreover, if the insured dies in an accident, then the family of the policyholder is entitled to twice the amount of the policy.
Critical Illness Cover This rider covers medical expenses for any illness which is terminal/critical in nature like heart attack, cancer etc. This rider provides immediate lump sum to the insured no matter what the total amount total expenses of the medical treatment are.
Maternity Cover This rider provides coverage for expenses incurred during the birth of a child. However, this rider can be used only after the waiting period is over, which can be 24 months or more depending on the insurance company. Some insurance companies offer coverage to the new born child till the end of the maturity period.
Hospital Cash This rider provides a daily cash allowance to the policyholder which may be used by him for taking care of the hospital and other medical expenses in the event of hospitalisation. The insurance company pays the daily cash amount to the policyholder once during the complete tenure and it can be used for a certain number of days as specified in the insurance policy.

Are Health Insurance riders worth buying?

A health insurance rider comes at an added cost and it is very important for an individual to identify if he really needs the rider or not. If one ends up buying all the riders, the premium amount will shoot up, thereby causing an individual to default on his premiums. Hence, one needs to be very careful with the rider he chooses.

Know Which Health Insurance Rider Suits Your Needs...

  • A maternity cover would be suitable for a young couple who plans to start a family within a couple of years. On the other hand, this rider won’t be suitable for a couple who have crossed the age of 50.

  • A room rent waiver should be bought by a family who wish to opt for a higher room rent and doesn’t want a sub-limit on the coverage.

  • A personal accident cover is suitable for an individual who travels a lot for the purpose of work or pleasure.

  • A critical illness cover should be bought by a family who have a history of critical illness in the past

Choose a rider wisely and secure your health!