When you want to protect your family and loved ones from financial catastrophe in the event of an unplanned passing, you purchase life insurance. But life insurance is only a base policy. Much like bundling supplemental coverage, you can purchase a variety of additional add-ons called ‘riders’ that stack on top of your base policy providing more customized coverage to accommodate your needs. There are dozens of individual types of riders so let’s dive deeper into the question: What are life insurance riders?
Protect Yourself From Accidents and Critical Illness
There are several riders designed to offer additional coverage to you and your family in the event of an unplanned accident, disability, or critical illness. These riders offer additional benefits that go beyond your base death benefit.
Accidental Death Rider
If you pass from an accident, as opposed to a physical illness, you could increase the payout of your policy. The accident has to be covered but if it is, it could pay up to double your original benefit. There are exclusions like mental illness and suicide. This rider is best to add early on, prior to your 65th birthday. After 65 you may need to complete a medical exam to add the rider.
Disability Income Riders
If you become disabled while your policy is active, you’ll receive monthly payouts to assist with your expenses. Your payouts vary based on the rider but usually it’s a percentage of the policies total coverage amount.
Critical Illness Riders
Sometimes you may need access to your benefit while you are still alive. There are several variations of riders that provide a benefit in the wake of certain events like critical or chronic illness. Only certain illnesses are covered and what’s covered varies by policy.
Accelerated Death Benefit Rider
Often called ‘living benefits’ its similar to the critical illness rider described above. You’ll receive part or even all of your policies benefit to use if you are diagnosed with a terminal illness. This rider may be free, inquire with your insurer.
Long Term Care Rider
You’ve likely heard of long term care insurance that offers a monthly payout to cover home care if you become critically or chronically ill and can no longer take care of yourself. A long-term care rider offers the same benefit but is often less expensive to add as a rider as opposed to purchasing a separate policy.
Protect Yourself and Your Family Financially
Purchasing life insurance is ultimately a financial decision and you want to ensure you have adequate coverage for every situation. For these situations you have waiver of premium riders, family income replacement, and even guaranteed insurability riders to ensure coverage in the future.
Family Income Benefit Rider
While your life insurance policy is expected to assist with the loss of your income, you can also purchase a rider to assist with it. This rider provides monthly payments to your family after you die.
Waiver of Premium Rider
Monthly premiums can be costly, especially if you lose your job or ability to earn income as before. The Waiver of Premium rider will allow you to stop paying on your policy if you become disabled and lose your primary income while allowing you to maintain your policy. .
Guaranteed Insurability Rider
If you purchase life insurance at a young age your coverage needs are likely to change. However as you get older and your circumstances change, the cost of life insurance will go up and if your medical circumstances have changed, you may even be denied. This rider guarantees that you can purchase additional coverage in the future without a medical exam.
Protect Yourself and Your Family
While life insurance is important to protect your family, protecting yourself in case of an unexpected loss of another family member may also be worth considering. Instead of purchasing separate policies you can add riders to your policy to insure others in your family.
Child Term Rider
A child term rider will offer a small amount of coverage to assist with burial expenses if a child dies unexpectedly. These riders cover your children and even your step-children and can often be converted to a permanent policy at the end of its term.
Spousal Rider
Similar to a child rider, a spousal rider protects your spouse with a small death benefit. Your spouse may still need to purchase an additional policy.
Riders: Offering You Additional Protection
Life Insurance riders ensure you are covered no matter what happens in life and here at Insuraway we can help you find the right ones. Choose from a variety of traditional riders to customize your coverage for your lifestyle and budget. Ready to purchase? Call us at 1-800-763-4167 to enroll today.
