A life insurance rider is an additional benefit or feature that can be added to a life insurance policy to provide extra protection or coverage. Riders can be purchased at the time of application or added to an existing policy. Some common types of riders include accidental death and dismemberment, disability income, critical illness, and long-term care. Riders can help policyholders tailor their coverage to meet their specific needs and provide additional peace of mind for themselves and their loved ones.
A Life Insurance Rider
A life insurance rider is an additional policy provision that can be added to a life insurance policy to provide additional benefits or coverage. Riders typically offer policyholders the opportunity to customize their coverage to meet their specific needs.
Some common types of life insurance riders include:
- Accelerated Death Benefit Rider: Allows policyholders to receive a portion of their death benefit in advance if they are diagnosed with a terminal illness.
- Accidental Death Benefit Rider: Provides additional death benefit coverage if the policyholder dies as a result of an accident.
- Guaranteed Insurability Rider: Allows policyholders to purchase additional coverage at specified intervals without undergoing a medical exam or providing evidence of insurability.
- Waiver of Premium Rider: If the policyholder becomes disabled and is unable to work, this rider allows them to continue their life insurance coverage without having to pay premiums.
It's important to note that riders may come at an additional cost, so it's important to carefully evaluate whether or not a particular rider is worth the investment. Additionally, some riders may have specific eligibility requirements or exclusions, so it's important to review the terms of any rider before adding it to a life insurance policy.
Standard life insurance riders include:
- Accidental Death Benefit: An additional payout if you die due to an accident.
- Waiver of Premium: You are not required to make payments on your policy if you become disabled.
- Guaranteed insurability: The standard to purchase additional coverage at predetermined ages and times without providing evidence of insurability.
- Accelerated Death Benefit: Allows you to access a portion of your policy proceeds before you die in the event of a terminal illness or injury.
- Spousal Rider: This rider ensures that you and your spouse are covered without purchasing two separate policies, with the surviving partner being named as the beneficiary.
