Just when you think you’ve found the perfect insurance policy, you notice something extra at the bottom of the page—insurance riders. These optional add-ons can enhance your coverage but come at an additional cost. The question is: do you really need them, or are they just another way for insurers to charge you more?
Let’s break down what insurance riders are, how they work, and which ones you might actually need.
What Are Insurance Riders?

Insurance riders are optional benefits that you can add to your base insurance policy for extra protection. Think of them as upgrades that tailor your policy to your specific needs. They can increase payouts, reduce out-of-pocket expenses, or provide coverage for scenarios not included in the standard plan.
However, these riders are not free. They increase your total premium, so it’s important to evaluate whether they provide value for the cost.
The two most common types of riders in Singapore are:
- Health insurance riders – Often attached to Integrated Shield Plans (IPs), these reduce medical costs.
- Life insurance riders – Provide additional payouts for events like total permanent disability or critical illness.
Now, let’s dive deeper into each category.
Health Insurance Riders: Are They Necessary?
Health insurance, particularly Integrated Shield Plans, helps cover hospitalisation expenses beyond what MediShield Life offers. However, even with an IP, you are still required to pay a deductible and a co-insurance portion of your hospital bills.
How Health Insurance Riders Work
IP riders are designed to reduce your out-of-pocket expenses by covering part of your deductible and co-insurance costs. Here’s how they work:
- Deductible: A fixed amount (e.g., $3,500) you must pay before your insurer covers the remaining costs.
- Co-insurance: A percentage of the bill (e.g., 10%) that you still need to pay after the deductible.
Example Without a Rider
Imagine you have an Integrated Shield Plan with a deductible of $3,500 and a 10% co-insurance requirement. If you incur a $100,000 hospital bill, here’s what you’ll pay:
- Deductible: $3,500
- Co-insurance: 10% of remaining $96,500 = $9,650
- Total out-of-pocket cost: $13,150
Example With a Rider
A rider that reduces the deductible and co-insurance portion could lower your expenses significantly:
- Deductible reduced by 95%: You only pay $175
- Co-insurance reduced to 5%: You pay $4,825
- Total out-of-pocket cost: $5,000 (saving $8,150)
Is It Worth Getting an IP Rider?
If you want to keep hospital bills manageable, getting an IP rider is a solid investment. However, note that all IP riders must be paid for in cash (not MediSave). Since different insurers offer varying levels of coverage, comparing policies before purchasing is key.
Life Insurance Riders: What Do They Cover?
Life insurance provides financial security for your loved ones in case of your death or permanent disability. Many life insurance policies allow you to add riders for additional coverage. Here are the most common ones:
1. Total Permanent Disability (TPD) Riders
A basic life insurance policy usually pays out only in case of death. A TPD rider ensures that you get a payout if you suffer a total permanent disability and can no longer work.
Is It Worth It? If your base life insurance already covers TPD, this rider may not be necessary. However, if it doesn’t, adding it can provide crucial financial support in case of disability.
2. Critical Illness (CI) Riders
This rider provides a lump sum payout upon diagnosis of a critical illness such as cancer, heart attack, or stroke. The payout can be used for treatment, daily expenses, or even lifestyle adjustments.
Is It Worth It? If you don’t already have a standalone critical illness policy, this rider is highly recommended. However, some policies become void once a CI claim is made, meaning you may no longer be covered for life insurance afterward. Read the fine print carefully.
3. Premium Waiver Riders
This rider waives all future premiums if you are diagnosed with a critical illness or suffer total disability. Your coverage continues without the need for further payments.
Is It Worth It? If you’re worried about being unable to pay premiums in the event of illness or disability, this rider can ensure continuous coverage without financial strain.
4. Personal Accident Riders
Provides additional coverage for accidental injuries, medical expenses, and even death due to an accident.
Is It Worth It? If you already have a personal accident insurance policy, this rider might not be necessary. However, if you engage in high-risk activities, adding this to your life insurance policy can be beneficial.
Which Insurance Riders Are Worth Buying?
If you’re on a budget and can only pick one, an IP rider should be your top priority. Medical bills in Singapore can be expensive, and reducing your out-of-pocket costs can make a huge difference.
For life insurance, a Critical Illness rider is a strong second choice, especially if you don’t have a separate CI policy. TPD and premium waiver riders are also worth considering depending on your financial situation.
Ultimately, the best insurance rider depends on your needs, lifestyle, and financial goals. Always review the fine print, compare insurers, and evaluate if the additional cost is justified by the benefits.
Learn More: Starting The Year Right: Financial Tips For you
Final Thoughts

Insurance riders can be powerful tools for enhancing coverage, but they also add to your premium costs. Understanding which ones offer real value can help you make informed decisions without overpaying.
If you’re unsure about which riders suit your needs, speaking to a financial advisor can help tailor an insurance plan that provides optimal coverage without unnecessary extras. After all, the goal is to protect yourself without breaking the bank!