What Are Life Insurance Policy Riders?

what are riders“Life insurance policy riders? You mean there’s even more to consider? After you’ve done your homework, compared different types of life insurance, and decided on the coverage you need—at the price you can afford to pay—there’s another level of customization for your insurance policy.

Life Insurance Policy Riders

Policy riders add a whole new dimension to your coverage, your benefits, and to protecting your family. And the best part? Many of them are FREE or come at a nominal cost. Riders allow you to customize your policy exactly to suit your needs.

Life insurance policy riders may be added on later to amend your original policy or may be included at the time your policy is issued. It’s never too late to add more coverage for peace of mind.

While there are a large number of riders available, from adding a Spouse and Children rider to a Family Income Benefit rider and more; some are considered more essential than others. So here’s a brief definition of some of the most popular choices:

  1. Guaranteed Insurability Rider – This very useful rider guarantees that you can renew or increase your amount of coverage, at a later date, without the need for a new medical exam or other proof of insurability.
  2. Term Conversion Rider – This rider allows you to change or convert your existing term life insurance policy (whole or in part) to a permanent whole life policy, without a new medical examination.
  3. Disability Waiver of Premium Rider – As the name implies, this rider protects your insurance coverage if you become disabled and unable to make your premium payments. Be sure to learn the specific requirements and regulations of individual companies and policies.
  4. Accelerated Death Benefit Rider – Also known as the Terminal Illness rider, this option provides a portion of your death benefit to you, if you are stricken with a terminal illness. The proceeds may be used for anything from medical bills to living expenses.
  5. Accidental Death Benefit Rider – Due to popular films and crime novels, this rider is also known as “Double Indemnity.” This is a bit of a misnomer because, in fact, the Accidental Death benefit may even triple the amount of your coverage, depending upon the insurance company.

Life insurance policy riders can greatly increase and enhance your traditional whole life insurance. The best way to learn about riders and how they can suit your needs is to schedule a free phone call with a Wealth Strategist.

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Paradigm Life

Paradigm Life (362 Posts)

Financial Services Company focusing on Infinite Banking and providing solutions to problems many American are currently facing. Located at 132 Pierpont Avenue, Suite 250, Salt Lake City, UT 84101.