Examples of Life Insurance Riders
Life insurance riders are extra benefits that can be added to a simple policy. They allow customization of coverage to fit your wants and needs. The riders do come at an extra cost, so it is advised that you choose the most important and necessary ones. In case you did not know, here are some examples of life insurance riders.
Guaranteed insurability– A guaranteed insurability rider lets you purchase extra coverage at a later date without needing a medical exam. Purchases may be restricted to periods of time or when significant events such as marriage, having a baby, etc. occur. One of the benefits is that if you are sick later in life, you can still purchase additional coverage without proving yourself as insurable.
Return of premium– For term life insurance policies, there is a return of premium rider. This rider gives you back all, or a portion, of all the premiums you have paid on the term policy if you outlive your term. Your beneficiaries will receive the paid premium amount if you die.
Waiver of premium– This next rider allows you to stop paying your premium if you were to become disabled and not able to work. Your policy stays active as if you were continuing the payments until you begin working full-time. It is important to talk to your insurance provider because the definition of disabled varies. This addition allows your policy not to lapse and keeps your family protected.
Family income benefit– As the sole breadwinner of your family, a family income benefit rider might be something to look into. This rider provides a steady flow of income to your family once you pass. When purchasing the rider, the insured must decide how long they want their family to receive the benefit.
Accidental death benefit– If the insured were to die as a result of an accident, an accidental death benefit rider would pay out a benefit that doubles the amount of the original benefit to their family. Anyone who works a dangerous job and needs additional coverage for their family would benefit from this rider.
Accelerated death benefit– Most policies usually include the accelerated death benefit rider for little to no cost. It lets you receive a benefit payout in the event you become diagnosed as terminally ill. It is entirely up to your discretion how you use the benefit, but it can help with medical expenses and such. One thing to remember is that this benefit payout will be subtracted from what your beneficiaries receive once you pass. The definition of terminally ill is also one that varies from carrier to carrier.
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We hope this information on examples of life insurance riders is helpful to you.
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