Life insurance can play an important role in the financial planning of your family's future. It is primarily designed to provide for your loved ones when you are away. You can also add additional benefits with riders – changes to your life insurance. Riders make it possible to choose benefits that are not usually included in basic life insurance and to change your insurance to better suit your needs. The following are some popular riders, available with some life insurance policies.
- Compensation in the event of an accident: If the insured dies in an accident, this rider secures an extra amount of compensation. It is also known as double compensation. It is important to note the insurance company's specific definition of accidents. Only accidents that conform to the definition will be covered by benefits in the event of accidental death.
- Accelerated death benefit: This rider is triggered by an event such as a fatal illness. It can pay out some of your death benefits before death to help you cover expenses such as long-term care. Accelerated death benefits can reduce the amount of death benefits.
- Premium exemption: With this rider, your life insurance will remain if you become disabled before a certain age and therefore can not continue to pay your premiums. A waiver from premium riders can pay up to a certain amount, which means that the insurance benefits can be maintained.
- Guaranteed insurance rider: This rider allows you to buy additional coverage at specific time intervals up to a certain age (usually 40 years)) without proof of insurability. It gives you an opportunity to get extra coverage regardless of health or other factors, based only on your age. Guaranteed riders can also include triggers for life events, such as marriage or the birth of a child, at which times a policyholder can purchase more coverage.
- Spouses and child riders: These riders provide life insurance coverage to a spouse or children. They contain a conversion provision that allows a spouse or child to convert to a permanent life insurance policy without providing proof of insurability.
- Term rider: If you need additional coverage for a limited period of time, during your working career, to For example, a runner can be linked to an existing insurance policy to adjust the coverage level for a specific period.
- Automatic premium loan insurance: If you fail to make your premium payment at the end of the deferral period, this rider will automatically take out a loan from the cash value of your insurance and use it to pay your premium. This can be very useful for anyone who might forget to make a payment.
- Return of premium rider: With this rider you can get your premiums back at the end of a life insurance policy. This money is considered a refund and they are tax free. The downside of returning to a premium rider is that it makes life insurance significantly more expensive.
Riders allow you to tailor life insurance to suit your needs. If you buy life insurance, our experienced agents can help you.