By definition, “insurance” is a contract that provides financial protection against loss. Whether it’s loss of property, a job, health, even a particular skill or unique characteristic (Betty Grable’s legs, Bruce Springsteen’s voice, etc.). One factor that plays a role in the selection of insurance is one you cannot prevent or control: change.
Change happens. Things change. Some are predictable, like the aging process. Some are not, like illness or accidents.
In the insurance business, there is a feature known as an “insurance policy rider.” An insurance “rider” is any addition to your basic insurance policy that allows you to add-on benefits not included in your original policy.
There are several popular riders that you might want to consider. Perhaps, the most useful of these riders is the Guaranteed Insurability Rider. This rider allows you to purchase additional coverage in the future, without a new medical examination. This guarantee is guaranteed, even if your health has changed.
Who Needs a Guaranteed Insurability Rider
The Guaranteed Insurability Rider usually sets specific dates for when you can purchase additional insurance. For example you might be able to add-on at age 30, 35, and 40 or every three years between 25 and 40. Usually, there is an age where the opportunity will end, often at age 40. Different insurance companies have their own guidelines and regulations.
This rider is especially helpful if you are in a high-risk group for a specific disease, due to family history, or if you believe that your health may change in the future. It is also a worthwhile rider to have in case of an accident that would affect your ability to increase your existing coverage.
When you talk to your Paradigm Life agent about your insurance needs, ask about including the Guaranteed Insurability Rider in your policy quote. You’ll be very grateful that you did.