Ask Mint | Rider option helps add value to your policy

Ask Mint | Rider option helps add value to your policy

The insurance business in India isn’t just growing, but also becoming more sophisticated in terms of product offerings. To help readers keep ahead of developments in this business, Mint features a Q&A on insurance every Monday.

Can I ask my insurance company to make investments in specific securities?

The decision to invest in specific securities is taken by the fund manager, who is designated to manage the corpus, in accordance with the investment mandate. However, if you have opted for unit-linked plans you can specify the proportion in which you would like to invest in a particular fund.

What additional benefits can be added to my life insurance policy?

Through the “rider" option, you can attach additional benefits to your policy such as the following:

• Waiver of premium rider, which provides for waiver of premiums by the insurer in the event of death or disability due to an accident

• Accidental death rider, which provides for payment of a higher sum assured if the insured dies due to an accident

• Guaranteed insurability, which provides for purchase of additional life insurance at regular rates and at specified ages, regardless of occupation or state of health and

• Term rider, which provides additional protection for specified periods of time

• Hospitalization cash benefit rider

Besides this, there are other riders which cater to specific needs.

I am 45 years old and my income is Rs4.6 lakh per annum. I want to buy an insurance scheme which gives tax advantage as well. Please guide me.

All insurance plans, be it term or unit-linked, offer tax benefits under section 80C and section 10 (10D). We would advise you to take a financial health check to determine what kind of policy you require.

Please keep in mind that since you are 45 years old, the tenure of the insurance plan should not exceed your retirement age.

Readers are welcome to write in with their queries to The questions will be answered by senior executives from leading insurance firms.

This week’s expert is T.R. Ramachandran, managing director and CEO, Aviva India.