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What Are Life Insurance Policy Riders?

“Life insurance policy riders? You mean there’s even more to consider?

You’ve done your homework. You’ve compared different types of life insurance. You’ve decided on the coverage you need—at the price you can afford. Now there’s another level of customization for your policy.

Life Insurance Policy Riders

Policy riders add a whole new level of coverage and offer additional benefits to protect your family. The best part? Many of them are FREE or come at a low cost. Riders allow you to customize your policy to fit your exact needs.

Life insurance policy riders may be added on later to 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.

There are lots of riders available, from adding a Spouse and Children rider to a Family Income Benefit rider and more.

Types of Policy Riders

Here’s a brief definition of some of the most popular life insurance policy riders:

  1. Guaranteed Insurability – This guarantees that you can renew or increase your amount of coverage at a later date without a new medical exam or other proof of insurability.
  2. Term Conversion – This rider allows you to convert your existing term life insurance policy to a permanent whole life policy, without a new medical examination.
  3. Disability Waiver of Premium – This rider protects your insurance coverage if you become disabled and unable to make your premium payments.
  4. Accelerated Death Benefit – Also known as the Terminal Illness rider, this option provides a portion of your death benefit to you, if you become terminally ill. The benefit may be used for anything from medical bills to living expenses.
  5. Accidental Death Benefit – In movies and crime novels, this rider is also known as “Double Indemnity”. In reality, 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 fit your needs is to schedule a free phone call with a Wealth Strategist.

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