7 Mistakes Indians Make While Choosing Riders (2025 Guide)

Riders, or add-on covers, enhance your life or health insurance policy by offering additional benefits for a small extra premium. They can be extremely useful — but only if chosen wisely.

In 2025, many policyholders in India still buy riders without understanding their purpose, limits, or cost-effectiveness. This leads to wasted money and unmet expectations during claims.

7 Common Mistakes to Avoid

Mistake	Why It’s a Problem	Better Approach
1. Buying All Available Riders	Increases premium without matching your needs.	Select riders relevant to your risk profile and goals.
2. Ignoring Critical Illness Rider	Misses lump sum cover for costly diseases like cancer.	Add if you don’t have a standalone critical illness plan.
3. Overlapping Covers	Paying twice for the same benefit via different policies.	Check existing policies before adding riders.
4. Choosing High Sum for Low-Value Rider	Some riders have fixed payout caps, making extra premium wasteful.	Match sum assured to actual need.
5. Ignoring Waiver of Premium Rider	Risk of policy lapsing if income stops due to disability.	Include if your family relies heavily on your income.
6. Not Understanding Claim Triggers	Riders may have strict conditions for payout.	Read the rider’s T&Cs before purchase.
7. Treating Riders as Investment	Riders are protection tools, not money-making options.	Use riders only to fill coverage gaps.

Case Example

Suresh bought all riders offered with his term plan, doubling his premium. Later, he realized he already had accidental death cover from his employer and didn’t need the extra rider — saving him ₹4,000/year when removed.