8 Common Life Insurance Riders -When buying a life insurance policy, a lot of people overlook the extra benefits that riders offer. If you’re a first-time insurance buyer, there are several common life insurance riders you can benefit from. These riders are optional add-ons that enhance your coverage and offer tailored solutions to meet various personal needs and circumstances.
In life insurance, there are several optional coverages that policyholders can have access to if they seek maximum protection for a specific situation. From accelerated death benefits to income protection. These riders can have a big impact on the financial security of both the policyholder and the beneficiaries of the policy.
In this comprehensive write-up, we will examine distinct life insurance riders. Also, outlining the type of coverage and tips to consider when including them in your policy.
8 Common Life Insurance Riders
Riders are specifically designed to help policyholders customize their coverage and access an extra layer of protection. They are additional benefits that enhance an existing life insurance policy.
However, note that you will most likely be charged more money for adding a rider to your policy. But it will be at a relatively low cost. That being said, let us explore eight common life insurance riders and what they entail:
Guaranteed Insurability Rider
A guaranteed insurability rider allows policyholders to increase the death benefit of their life insurance policy at predetermined times without requiring additional medical underwriting.
If you want to increase the death benefit on your policy, then you should purchase this rider. You don’t have to undergo a medical exam before adding this rider to your policy. But you will most likely be charged extra money.
Accelerated Death Benefit Rider
If you are diagnosed with a chronic illness or condition, an accelerated death benefit rider lets you access a portion. Or even all of your death benefit while still alive, helping you cover medical expenses and other related costs.
This rider is specifically designed for policyholders who require long-term care, life support. And those who are permanently moving to a caregiving home for adequate care.
Waiver of Premium Rider
In a situation where you lost your source of income or you are unable to work due to one form of disability. Or the other, a waiver of premium rider will pay for the premiums you’ve missed. Most insurers allow you to add this optional coverage to your life insurance policy at the time of purchase.
Long-Term Rider
Long-term care is typically for those who are battling a chronic condition and are unable to perform daily tasks. Such as bathing, eating, dressing, and using the restroom. This rider allows you to have access to the death benefit while you are alive to take care of urgent medical needs.
Accidental Death & Dismemberment (AD&D) Rider
An accidental death & dismemberment rider protects you and your family in the event that you lose a limb or die due to an accident or a severe injury. This type of rider also offers financial protection if you are diagnosed with paralysis.
Family Income Rider
The family income rider is essentially to protect your loved ones by providing them with monthly payments when you are no more. This rider ensures that your family is not financially burdened and their standard of living is being maintained. The primary purpose of a family income rider is to make sure the family you left behind does not pass through financial difficulties.
Critical Illness Rider
The critical illness rider covers the cost of treatment and other medical expenses if a policyholder is diagnosed with a critical illness. The cost of treating a critical illness is on the high side;. Hence, it may be a wise option to add this rider to your life insurance policy. Nevertheless, endeavor to check the list of illnesses. It covers because coverage for all types of illnesses may not be available.
Child Term Rider
This rider is typically designed to offer death benefits in the event that a policyholder loses his or her life at a very young age. If your child dies before attaining a specific age. A child-term rider will provide financial protection to get through this difficult time. On the other hand, when your child attains maturity. You can convert your term plan to permanent insurance without going through a medical examination.
How to Add a Rider to Our Life Insurance
Usually, individuals who are first-time insurance buyers are provided with a variety of coverage options they can add to their policy. Most times, riders are added to a life insurance policy at the time of purchase.
Other insurance companies may allow you to add a rider to your previous insurance policy. This is depending on your unique situation and coverage needs. In essence, the process of adding a rider to a life insurance policy. It typically depends on the insurance company, policy type, and individual circumstance.
If you share a motive of getting additional protection through a rider. You can reach out to your insurance company to know how to go about it. Inquire about the types of riders they offer; you can also ask if they have a rider for the exact type of situation you want coverage for.
In Summary:
Being aware of life insurance riders that are readily available can significantly improve your policy and offer protection catered to meet your individual needs. You can consult your insurance agent about rides as you weigh your life insurance options to see which one could be the best for you.
