Life insurance provides a financial benefit if you die. Live drivers can enhance or enhance your life while you live.
When most of us buy life insurance, we do not think about ourselves. We think of those we love and protect our families should something tragic happen to us. This is the main reason why you buy life insurance – but it is not the only one. Which leads us to riders.
So what is a rider in insurance? Life insurance drivers are usually a supplement to the policy that allows you to select additional features so that you can customize life insurance coverage to meet your specific needs. Some riders are inherent in a policy and others are available at an additional cost, and / or may incur a fee when exercising. Some life insurance companies offer insurance with "benefits for living benefits." This type of insurance rider provides benefits that can offer value to you while you live.
In this article:
Living Benefit for Riders That Make Life Less Difficult
With the term life insurance, the interaction that most people have with their life insurance company is a monthly bill for 10 to 30 years. You pay your monthly premiums and hope that your family will never have to use it. For the team at Haven Life, it seemed like a missed opportunity.
That's why Haven Life puts a new twist on riders who offer living benefits with Haven Life Plus. Included in the cost of eligible Haven Term policies, issued by MassMutual, Plus gives policyholders access to benefits to help them live healthier, fuller and more protected lives.
Access to the following services is available via Plus:
- Aaptiv is an on-demand audio and video training app with thousands of workouts in a variety of popular categories, including running, strength training, yoga and meditation.
- LifeSite offers a secure online safe for storing, managing and sharing your family's important documents free of charge.
- MinuteClinic offers a 15 percent discount coupon for family health services within CVS Pharmacy and Target stores.
- Timeshifter uses the latest research in sleep and circadian neuroscience to help you create a personal itinerary to relieve the symptoms of jet lag.
- Trust & Will is a digital solution that produces legal wills for you and your partner free of charge. The service also includes a power of attorney for health care and directives.
Accelerated Death Benefit
While Plus is available with Haven Term, there are many riders who are common with life insurance. For example, a regular rider who offers a living benefit is known as an "accelerated death distributor". Let's say you have a terminal illness while you have an active life insurance policy. You will surely be happy to know that you have life insurance coverage for your family recipients. But in the meantime, loss of income or increased expenses (such as medical bills not covered by health insurance) can drain your family's assets or even lead to debt before you pass. Your debt would then need to be settled by your property.
When you are insured, an accelerated death driver allows you to receive an advance on part of the available police death benefit early if you are diagnosed with a terminal illness that is expected to result in the death within the time period noted by the rider, usually 12 months, which can make your last days easier. Usually you need a diagnosis that gives you a year or less to live. Part of the death benefit is paid to you to use as you wish – to cover medical bills, pay shared debt, arrange your business or even create memorable experiences with your family.
Most, but not all, basic life insurance policies offer this rider as an inherent benefit of your insurance, which means it is included in the price of your monthly premium. Generally, an administrative fee is charged if the driver is exercised.
And the amount of your insurance that insurance companies allow you to access for this type of benefit varies. For example, Haven Term policyholders can access up to 75 percent of their benefit, or a maximum of $ 250,000, whichever comes first. (Note: Access to these benefits reduces the payout to your beneficiaries in the event of a dollar-for-dollar death.)
Disability Premium Waiver
Premium waiver is another common rider offering a live benefit. This rider waives premiums for the insurance and all eligible riders if the policyholder becomes completely disabled as described in the rider. This prevents your life insurance from expiring. Usually this rider can be added for an extra fee for your premium payments. Policies vary, and there may be age or permit restrictions.
The Social Insurance Agency found that one in four Americans living with becomes disabled before they reach retirement age, so the ability to meet the definition of total disability at some point. is more common than you might think.
Depending on the driver, it may cover you for a certain number of months or up to a certain age. The individual conditions for the rider vary from carrier to carrier. In addition, there are no fees for using this benefit (this is what the extra cost cost covers). However, there may be a waiting period before you can claim to use this rider.
Other types of riders offering life benefits
While the accelerated death benefit is the most common type of rider offering living benefits, there are other specialized riders.
A long-term caregiver can cover the cost of a nursing home or nurse as you age. Usually linked to the more expensive full or permanent life insurance, this coverage can help supplement a standalone long-term care insurance while providing a death benefit. This rider works as a long-term disability insurance, but instead of buying a separate insurance, it is a rider on your life insurance cover. If you become disabled and unable to work, the life insurance company would pay you a monthly allowance to reimburse part of your income. In addition, premiums for life insurance cover can be exempted while the policyholder receives invalidity benefits.
The driver with a critical illness pays benefits to the policyholder to cover treatment for illnesses specified in the insurance policy, which may include any number of critical medical conditions that are likely to limit your life expectancy.
There is also an unintentional rider in case of death. An unintentional death rider is an alternative rider than life insurance. This optional feature gives your recipients access to a larger cash payment if you die in an accident. Keep in mind that not all accidents would be covered by this rider.
You should know that claims paid from insurers with riders like these will reduce the policy death benefit and (if applicable) the insurance value. When the policyholder dies, his or her beneficiaries will receive a reduced amount that reflects the money already used to pay claims.
Finding the Insurance That Works Best for You
A rider with living benefits is like a sidecar for your life insurance to improve your benefits while you are still living. Depending on the driver, it can add improvements to your coverage to provide support for more parts of your life. Not everyone needs all the riders available to them.
No one wants to read the fine print when buying a life insurance policy. But you do not want to miss out on benefits that can make your life better.
Always check to see which riders are automatically included in the price of your life insurance – such as the accelerated death benefit and the Haven Life Plus rider with Haven Term policy. You may find that your life insurance can benefit you as well as your loved ones.
About Chelsea Brennan
Chelsea Brennan is the founder of Smart Money Mamas, a personal finance blog that focuses on family financing, investing and reducing money stress. Chelsea is a former investor in hedge funds whose work has appeared in a wide range of publications, including Forbes, Business Insider and more.
Read more by Chelsea Brennan
Our Editorial Policy
Haven Life is a customer-centric life insurance agency supported and wholly owned by the Massachusetts Mutual Life Insurance Company (MassMutual). We believe that navigating life insurance decisions, your personal finances and general well-being can be refreshingly easy.
Our Editorial Policy
Haven Life is a customer-centric life insurance agency that is supported and wholly owned by the Massachusetts Mutual Life Insurance Company (MassMutual). We think it can be refreshing to navigate life insurance decisions, your personal finances and general well-being. Haven Life does not support the companies, products, services or strategies discussed here, but we hope they can make your life a little less difficult if they suit your situation.
Haven Life does not have the right to provide tax, legal or investment advice. This material is not intended to be provided and should not be relied upon for tax, legal or investment advice. Individuals are encouraged to seek advice from their own tax or legal counsel.
Haven Term is a term Life Insurance Policy (DTC and ICC17DTC in certain states, including NC) issued by Massachusetts Mutual. Life Insurance Company (MassMutual), Springfield, MA 01111-0001 and offered exclusively through Haven Life Insurance Agency, LLC. In NY, Haven Term is DTC-NY 1017. In CA, Haven Term is DTC-CA 042017. Haven Term Simplified is a Simplified Life Insurance Issue (ICC19PCM-SI 0819 in certain states, including NC) issued by C.M. Life Insurance Companies, Enfield, CT 06082. Numbers and functions for insurance forms and riders may vary by state and may not be available in all states. Our California agency license number is OK71922 and in Arkansas 100139527.
MassMutual is rated by A.M. Best company as A ++ (Superior; top category 15). The rating is from Aril 1, 2020 and may change. MassMutual has received different ratings from other rating companies.
Haven Life Plus (Plus) is the marketing name of the Plus Rider, which is part of the Haven Term policy and offers access to additional services and benefits free of charge or at a discount. The driver is not available in all states and is subject to change at any time. Neither Haven Life nor MassMutual are responsible for the provision of the benefits and services made available under Plus Rider, which are provided by third party providers (partners). For more information about Haven Life Plus, visit: https://havenlife.com/plus.html