Income Benefit Rider

The eligibility criteria for income benefit rider is as follows:

Documents Required for Income Benefit Rider Claim

The list of documents required for income benefit rider claim are as follows:

• Policy Documents Original/Copy
• Filled Claim Duly Filled
• Photo ID & Address Proof of Policyholder
• Medical Test Reports
• Nominee’s Photo ID & Address Proof
• Copy of policyholder’s bank statement/cancelled cheque
• Attending Medical Practitioner's Certificate

Income Benefit Rider Exclusions

The list of exclusions under the income benefit rider is as follows:

• Hereditary Diseases
• Pre-existing Medical Condition
• Drug Abuse/Overdose
• Participation in civil commotion, riots, war or rebellion
• Attempt to suicide or self-inflected injuries

Importance of Purchasing Income Benefit Rider

Income benefit rider can be a good choice of additional coverage under a term insurance policy, in case the life assured is worried about the source of income for his/her family, in the absence of the life assured. Here are few reasons why you should consider Income Benefit Rider for your term insurance policy:

1. Income Benefit: Under the income benefit rider, regular instalments are provided as a payout, in case an unforeseen event occurs such as untimely demise of the life assured during the coverage period. A pre-decided number of instalments which can be equivalent to monthly instalment, for a pre-fixed period of time, shall be provided to the family of the life assured, in case of an untimely demise of the life during the covered period. This rider can help the life assured ensure financial stability and income for his/her family in difficult circumstances. Income Benefit riders can help substitute the income of the life assured, in their absence. This rider can be a great addition to a term insurance policy.

2. Financial Security: Income benefit rider definitely provides financial security to the family of the life assured in case of an unforeseen demise of the life assured. This rider can substitute the income of the life assured, in case of his/her untimely demise during the coverage period, which can help the family member to maintain their lifestyle even in the absence of the life assured. The regular instalments, which can be regular monthly instalments for a decided time period, can help the family of the life assured to fulfill their daily expenses, complete their goals and maintain a healthy lifestyle even if the life assured is not around.

3. Tax Benefits: Under term insurance policy, the life assured can avail tax benefits for the premiums paid towards the term insurance policy and rider. The life assured can avail upto Rs. 1.5 Lakh of tax exemption under the Section 80C and Section 10(10D) of the Income Tax Act,1961. Premiums paid towards the income benefit rider are also eligible for tax exemption under the section 80D of the Income Tax Act, 1961. The life assured can avail tax exemption if the premiums do not exceed 10% of the sum assured.

4. Economical Option: Income benefit rider is an economical additional coverage that can be purchased along the term insurance policy. This rider is affordable and can enhance the power of the term insurance policy at a nominal cost. This rider provides financial protection to the family of the life assured and substitutes the income of the life assured in the event of an untimely demise of the life assured. The premiums for such riders are comparatively lower than that of a term insurance policy, you may have to pay an additional premium for additional coverage but at a nominal cost.

5. Eliminates the Need of Multiple Policies: Purchasing an income benefit rider can eliminate the need of multiple policies, as these riders last as long as the term insurance policy and provide the same level of coverage which results in enhanced coverage. If you purchase a rider, you may not need to purchase another policy for yourself.