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Insurance Life Insurance Riders

Life insurance riders stand for nothing but the added benefits that form an additional part of a basic insurance policy. These riders give enhanced advantages along with your insurance cover.


Once you have figured out how much life insurance you require, the number of years you need it and how much you can afford to pay for coverage, you can decide on a policy that best fits your needs. However, it often happens that the different policies offered by various insurance providers vary, and don’t cover all you’re your needs. Here is where insurance riders come to the rescue.

What are Insurance Riders? Insurance riders are a provision in insurance that can be purchased separate from basic policies. They provide additional benefits at an additional cost. Usually, standard policies leave little room for customization or modification, beyond choosing deductibles as well as coverage amounts. Riders help policy owners to create an insurance product that meets specific needs. There are an array of life insurance riders and are usually called add-ons.

For instance, an accelerated death benefit rider would provide a payout to the policyholder while he/she is still alive, in case of a terminal disease. The policy owner can use these funds to pay for medical expenses. When the insured passes away, the beneficiary receives a reduced death benefit, as the rider has allowed a portion of the amount to be used early.

Types of Life Insurance Riders:

Waiver of Premium: With this rider, you do not have to pay the premiums if you become completely disabled and cannot work.

Guaranteed Insurability: This rider allows you to purchase additional coverage at a later stage, without undergoing any medical checkup or providing evidence of your insurability.

Disability Income: With this rider the insured collects a regular income from the insurance company in case he/she becomes totally disabled and cannot work anymore. The policy specifies the amount of income and whether it is paid for a specific amount of time or for the length of disability.

Accelerated Death Benefit: This rider allows the policyholder to collect a portion of the death benefit in case he/she becomes terminally ill and has a short life expectancy. It is included automatically for free or provided at a nominal cost.

Term Conversion: Term life insurance provides coverage for a specific period of time and permanent life insurance provides lifelong coverage. This rider allows you to convert term life insurance to permanent life insurance without having to undergo a medical checkup.

Accidental Death Benefit: In case the insured dies from an accident, this rider provides additional benefit over and above the regular death benefit amount included in the policy. This option is referred to as double indemnity whenever the additional payout is equal to the original death benefit amount. Sometimes, this rider also includes additional payments for dismemberment.

There is no single rider that will cover all your needs and is right for you. You will need to checkout different options to find the best package for all your needs. The costs of riders will vary and depend upon factors such as age, present health and type of policy. My best way to go about it is talking to a knowledgeable and experienced insurance agent to make the right decision. Never rush into an insurance policy or rider. After all, insurance is meant to offer security and peace of mind.

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