Is it worth buying a Permanent Disability Rider?

If you meet with an accident that leaves you permanently disabled, your family will struggle financially, especially if you are the sole breadwinner. Besides their regular expenses, there is now the additional expense of your treatment and caregiving.
 
Even if you have a term plan, they can't get the insurance amount unless you pass away during the policy duration.
 
How do you replace the income that you can’t earn anymore? In this scenario, your family will need all the financial help they can get.
 
The solution is simple -> Permanent Disability Rider.
 
It is an add-on benefit you can choose along with your term plan that pays you a pre-decided lumpsum amount right away, in the event of your permanent disability.

A permanent disability can result in a financial crisis for your family. You should opt for this rider if you want to protect your loved ones from:
 

• The financial shock of income loss due to disability

• The extra costs arising due to disability

Let's understand with an example:
 

Say, you have purchased a term insurance policy with a life cover of ₹ 1 crore and a Permanent Disability rider of ₹ 50 lakhs. 
 

If you are disabled in an accident, you will get ₹ 50 lakhs right away. If you pass away, your family will get ₹ 1 crore. 
 

Pro tip: If you decide to buy the Permanent Disability and Critical Illness Riders, and your insurer waives off all future premiums under these riders, you can skip the Waiver of Premium Rider.

While the actual cost will vary from insurer to insurer, the Permanent Disability Rider is relatively expensive compared to other riders. 
 

If you are considering opting for this rider, you should check the cost information with your insurer or an insurance advisor right away.

Your insurer will give you the option of choosing this rider when buying a term insurance plan.

Or you can even buy it on your policy anniversary.

The exact process of course will vary from insurer to insurer so we suggest you speak to your insurer of choice or an insurance advisor to know more about this.

Yes. The Permanent Disability Rider is what we call an Additional Rider which pays an additional amount over and above the term plan life cover amount. Permanent disability-related circumstances are also covered by terminal illness riders.

Yes, you can always buy this rider after buying the term policy but only on the date of your policy anniversary.

With the Permanent Disability Rider, you can also get up to ₹ 1.5 Lakh tax benefits for the premiums towards the term plan, provided the premium does not exceed 10% of the basic life cover, under section 80C and 10(10D), 80D of the Income Tax Act.

It’s very important to note the exclusions under this rider i.e. cases for which you won’t receive the rider benefits, such as:  
 

• Suicide
• Self-inflicted Injuries
• Alcohol abuse or drug overdose
• Disability that occurs after 180 days from the accident
• Participation in riots, war, civil commotion, rebellions or other dangerous activities 

The exclusions will vary from insurer to insurer.

Speak to your insurer to check the complete list of rider exclusions.