The term rider acts in the same manner as a term life insurance policy - if the insured were to die, the sum assured under the term rider is payable to the nominee. In the event of death of the insured, this rider provides for a payment equal to the sum assured or a pre-determined term rider sum defined in the life insurance policy. The term rider is a pure insurance product and is therefore a low-cost benefit. Insurance companies thus have a limit to the maximum sum assured under this rider.

See also:

Accidental Death Benefit Rider

Accidental Disability/Dismemberment Benefit Rider

Critical Illness Benefit Rider

Guaranteed Insurability Option Rider

Hospital Cash Benefit Rider

Life Guardian Benefit Rider

Waiver of Premium Rider

FAQs on Life Insurance Basics

Life Insurance FAQs on Premiums

Life Insurance FAQs on Claims

Life Insurance FAQs on Insurance Company and Insurance Agent