Life insurance riders offer customization for your policy to meet you and your family’s needs. Here’s what you should consider when deciding if one may be your best fit.
Know What You’re Signing Up For
While each type of life insurance policy is different, they all focus on one or two things — your death benefit and cash value through investments. The death benefit, ranging from $2,000 to over $1 million, is standardly issued by your insurance provider when you, the policyholder, pass away. In exchange for this coverage, you’re required to pay a monthly premium.
A rider, then, customizes this process and other benefits that life insurance can offer. It’s a provision that can often provide extra protection, such as higher death benefits, early payouts, or a waiver of premiums. You’ll typically need to purchase your rider along with your policy (though some let you add one on once your policy is active).
Life insurance riders can be very valuable for you, but they often come with a high price tag. Whether the benefits are worth the cost will depend on what you need and what riders are available.
Know the Riders That Work For You
Every insurance company offers different riders. However, these are some of the most common:
- Accelerated Death Benefit Riders: If you want to use your death benefit while you’re living, you can purchase an accelerated death benefit rider specific to a health condition, i.e., terminal, critical, or chronic illnesses.
- Long-Term Care Riders: Similar to and sometimes considered an accelerated death benefit, long-term care riders let you use your death benefit early to pay for residential or in-home long-term care services if you can no longer live independently.
- Family Insurance Riders: These riders let you purchase a small amount of coverage for your family members to pay for things like burial costs or childcare.
- Accidental Death and Dismemberment Riders: This provides coverage in case you pass away in an accident and covers medical expenses for lost limbs or fingers.
- Waiver-of-Premium Riders: If you cannot make premium payments because you have become permanently disabled, this rider lets you keep your coverage without paying premiums.
- Guaranteed Insurability Riders: You can change the amount of your death benefit, and thus your monthly payment, alongside important milestones like marriage or childbirth.
Know Where To Find Life Insurance Help
The best way to learn everything you need to know about life insurance riders is with All Things Insurance. To learn more, call us at (763) 645-5450.