- Difference of Both
- Reasons to Buy
- The right one for you
I am a passionate content writer with over three years of experience in the insurance domain. An avid learner, I always tries stays ahead of the industry's trends, ensuring my writing remains fresh and includes the latest insurance shifts. Through my work, I strive to engage with targeted insurance readers.
Reviewed By:
Priya has been in the content writing industry for over 9 years. She has been religiously following the insurance sector since the start of her career which makes her an avid insurance expert. Her forte lies in health, term, and life insurance writing, along with her knowledge of the latest developments in the insurance sector.
Updated on Jan 23, 2024 3 min read
Content Manager with heart, mind, and soul dedicated to creating impactful content that exceeds the market standard, delivers and reaches the readers conveniently. Besides producing high-ranking content, my focus lies in creating content that solves user queries and adds value.
Written By: Himanshu Kumar
Updated on Jan 15, 2025
Content Manager with heart, mind, and soul dedicated to creating impactful content that exceeds the market standard, delivers and reaches the readers conveniently. Besides producing high-ranking content, my focus lies in creating content that solves user queries and adds value.
Reviewed By: Anchita Bhattacharyya
15 min read
Income Benefit Riders in Life Insurance
Riders refer to the extra protection or additional benefits that you can add up to your basic life insurance plans by paying an extra amount.
There are several riders available with life insurance such as Accidental Death Benefit Rider, Accelerated Death Benefit rider, Total Permanent Disability rider, Critical Illness Rider, Income Benefit Rider and Terminal Illness Rider. In this article, we will learn about Income Benefit Rider.
What is an Income Benefit Rider?
As per the word income, the income benefit rider provides monthly income to the policyholder under the following circumstances:
- Permanent Disability
- Critical Illness
If the policyholder falls under these circumstances and is unable to earn for more than six months of tenure. The income Benefit rider offers the regular income until the policy term, according to the plan which supports the customer to cover living expenses and maintain their current lifestyle.
Who Should Buy an Income Benefit Rider?
The following is a list of people who should opt for an income benefit rider:
- Primary bread earner of the family.
- A person who travels regularly.
- A person who is doing high-risk profile jobs such as mines, construction sites etc.
Eligibility Criteria for Income Benefit Rider
The Eligibility criteria for income benefit rider are as follows:
| Terms | Eligibility |
| Age Limit | 18-65 years |
| Max Maturity age | 70 years |
| Sum assured | Same as the base Plan |
| Coverage | Same as the base plan |
| Premium Paying features | Same as the base plan |
Benefits of Income Benefit Rider
Following is the list of benefits of income benefits riders:
- Financial Security Income benefit rider provides financial freedom, by providing a reliable source of income in the event of disability and critical illness, ensuring financial security in tough times.
- Maintaining Lifestyle Through income benefit rider policyholders can sustain their current lifestyle without compromising basic needs by providing a monthly income as per the plan.
- Flexibility Income Benefits rider provides flexibility to choose payout options such as monthly, annual or lump sum as per the financial planning of the customers.
- Provide Disability Coverage The basic life insurance plans do not include disability coverage in their terms. Adding an income benefits rider with your plan provides crucial protection against the loss of income due to any type of disability.
Exclusions of Income Benefits Rider
Following is the list of exclusions of the income benefit rider:
Suicide
Self-inflated injuries
Pre-existing disease
Use of alcohol, drugs, etc
Injuries due to war, terrorism, riots etc
Participating in any adventure sports: underwater, sky-diving etc.
Conclusion
The income benefit rider provides an extra layer of protection to your basic life insurance plan. It gives you financial freedom in events like disability, critical by paying a regular monthly income to maintain your current lifestyle without any hassle. Adding an income benefit rider to your life insurance plan is like adding an extra safety net for your financial planning for a more secure future.
Income Benefit Rider : FAQs
1. Can I Purchase an Income Benefit rider between a policy term?
No, the rider could only be opted at the time of purchase of the policy or the anniversary of the policy.
2. Can I get a tax exemption for income Benefit rider?
Yes, you can get a tax exemption for opting for an income benefit rider under section 80c of the Income Tax 1961.
3. What is the minimum entry age for opting for an income benefit rider?
The minimum entry age for opting for income benefits rider is 18 years of age.
4. What are the conditions under which policyholders can opt for income benefit rider?
The Policyholder can opt income benefit rider with the regular policy term, only under Permanent disability. Critical illness
Other Term Insurance Companies
4493-1741698074.png)
4509-1741341976.png)
4391-1741255269.png)
4430-1740390818.webp)
Share your Valuable Feedback
4.6
Rated by 857 customers
Was the Information Helpful?
Select Your Rating
We would like to hear from you
Let us know about your experience or any feedback that might help us serve you better in future.
Written By: Varun Saxena
I am a passionate content writer with over three years of experience in the insurance domain. An avid learner, I always tries stays ahead of the industry's trends, ensuring my writing remains fresh and includes the latest insurance shifts. Through my work, I strive to engage with targeted insurance readers.
Do you have any thoughts you’d like to share?