South Leads Term Insurance Rider Purchases: Study
A rider is an optional add-on to a standard insurance policy that provides additional benefits for an extra cost. It allows you to customize your policy to meet specific needs, such as enhanced coverage for critical illnesses, accidental death, or waiver of premiums: Reports
MUMBAI: The country is witnessing a strong shift towards comprehensive term insurance in India with the Southern regions outpacing North in buying riders when buying term plans showed a study by leading insurance aggregator Policybazaar of its own customers from July 2025 to October
2025. A rider is an optional add-on to a standard insurance policy that provides additional benefits for an extra cost. It allows you to customize your policy to meet specific needs, such as enhanced
coverage for critical illnesses, accidental death, or waiver of premiums.
Around 45-47 per cent of term plan buyers in Southern metros and Tier 2 markets bought Accidental Total Permanent disability and Accidental Death Benefit riders reflecting strong awareness and preference for holistic protection. The Eastern regions showed steady growth maintaining 32-34 per cent rider attachment while Mumbai, Pune, Ahmedabad stayed moderate at 30-31 per cent. In Northern region, only 21-23 per cent of insurance buyers bought riders signaling a need to engage and create awareness.
While men preferred to buy Accidental Total Permanent disability and Accidental Death Benefit riders, women actively purchasing term insurance preferred critical illness riders with cancer screening features that offered long term health security. Hyderabad led nationwide with 52-56 per cent of buyers buying bundled protection.
Both Hyderabad and Bengaluru home to affluent, young, highly paid, financially aware consumers showed a strong uptake in critical illness riders.
For cover below Rs 2 crore, most buyers prioritized Accidental Death Benefit riders, reflecting a focus on basic income protection for dependents in case of unforeseen events. As the cover amount rose,
there’s a shift towards critical illness riders. These customers were financially secure seeking comprehensive health-linked protection that safeguarded both earning potential and long-term medical expenses.
The NRI segment showed stable demand at 40-43 per cent reflecting higher awareness for comprehensive coverage and long-term risk management.
