Life insurance provides a financial benefit if you die. Living benefit riders 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 in case something tragic should happen to us. This is the main reason to buy life insurance – but it is not the only one. Which leads us to riders.
So, what is a rider in insurance? Life insurers are usually a supplement to the policy that allows you to select additional features, so 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 trained. Some life insurance companies offer insurance with "living benefits riders". This type of insurance rider provides benefits that can give you value while you live.
In this article:
Living benefits riders who make life less difficult
With life insurance, the interaction that most people have with their Life insurance companies are 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 put a new twist on riders offering life benefits with Haven Life Plus. Included in the cost of qualified Haven Term insurances, issued by MassMutual, the Plus Rider gives policyholders access to benefits that help them live healthier, fuller and more protected lives. With a qualified Haven Term life insurance you get a lifetime insurance as well as some notable benefits that you can take advantage of immediately.
Access to the following services is available via Plus:
- Aaptiv is an audio and video based fitness app on request with thousands of workouts in a variety of popular categories, including running, strength training, yoga and meditation. A subscription is included free of charge.
- LifeSite provides a secure online bank where you can store, manage and share your family's important documents free of charge.
- MinuteClinic offers a 15% discount coupon for family health services at CVS Apotek and Target-
- Timeshifter uses the latest research in sleep and circadian neuroscience to help you create a personalized itinerary to relieve the symptoms of jet lag. A subscription is included at no extra cost.
- Trust & Will is a digital solution that draws up legal wills and / or sets up a legal trust for you and your partner free of charge. (Normally this can cost up to $ 699.) The service also includes a power of attorney and directive for health care.
- even detail what happens to your social media accounts, all online. A premium membership with a full pre-plan normally costs $ 149. Plus offers it free of charge.
Accelerated Death Compensation
While Plus is available with Haven Term, there are many other riders who are common with life insurance. For example, a regular rider who offers a life benefit is known as an "accelerated death benefit rider." Let's say you have a fatal illness while you have active life insurance. You will surely be happy to know that you have a life insurance policy for your family beneficiaries. 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 result in debt before you pass. Your debt may then need to be settled by your estate.
When you are insured, a policyholder with accelerated death allows you to receive an advance on part of the available insurance death benefit early if you are diagnosed with a fatal disease that is expected to lead to death within the time period specified in the rider, usually 12 months, which can make your last days easier. Usually you need a diagnosis that gives you a year or less left to live. Part of the death benefit is paid to you to use as you wish – to help cover medical bills, pay shared debts, get your business in order or even create memorable experiences with your family.
Most, but not everyone. , basic life insurance offers this accelerated benefit rider as an inherent benefit in your insurance, which means that it is included in the price of your monthly premium. In general, 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. (Please note: Access to these benefits reduces the payment to your beneficiaries in the event of a dollar-for-dollar death.)
Premium Disability Exemption
Premium Exemption is another common rider that offers a life benefit. This housing benefit will waive premiums for the insurance and all eligible riders if the policyholder becomes completely disabled as described in the rider. This will help prevent your life insurance from expiring. Usually this rider can be added for an extra fee to your premium payments. Policies vary, and there may be age or state availability restrictions.
The Social Security Administration found that one in four Americans will be disabled before reaching 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 policyholder, it may cover you for a certain number months or up to a certain age. The individual conditions for the driver vary from carrier to carrier. In addition, there are no fees associated with using this benefit (this is what the extra premium 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 a more common type of rider offering a life benefit, there are other specialized riders
A long-term care rider can cover the cost of a nursing home or a nurse as you age. Usually linked to the more expensive full or permanent life insurance policies, this coverage can help supplement a stand-alone long-term care insurance policy while providing death benefits.
Then there is health insurance. 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 scholarship to reimburse part of your income. In addition, premiums for life insurance cover can be waived while the policyholder receives disability benefit.
With the critical illness rider, benefits are paid to the policyholder to cover treatment for illnesses specified in the insurance contract, which can include any number. of critical medical conditions that are likely to limit your life expectancy.
There is also an accident benefit. An unintentional death rider is an alternative to life insurance. This optional feature gives your beneficiaries 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 damages paid from insurance policies with cyclists such as these will reduce the insurance death benefit and (if applicable) the cash value of the insurance. When the policyholder dies, his or her beneficiaries will receive a reduced amount that reflects the money already used to help pay damages.
Finding the insurance that works best for you
A rider with life benefits is like a sidecar in your life insurance that will help you improve your benefit options while you are still alive. Depending on the driver, it can add improvements to your coverage to provide support for more areas of your life. Not all people need every rider 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 drivers 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 focusing on family finances, investments and reduces money stress. Chelsea is a former hedge fund investor whose work has appeared in a wide range of publications, including Forbes, Business Insider and more.
Read more by Chelsea Brennan
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Haven Life is a customer-centric life insurance agency supported and wholly owned by the Massachusetts Mutual Life Insurance Company (MassMutual). We believe it can be refreshingly easy to navigate life insurance decisions, your personal finances, and overall well-being. ). We believe it can be refreshingly easy to navigate life insurance decisions, your personal finances and overall well-being.
Our content is created for educational purposes only. Haven Life does not endorse 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 is not authorized to provide tax, legal or investment advice. This material is not intended to provide and should not be used for tax, legal or investment advice. Individuals are encouraged to seek advice from their own tax or legal adviser.
Haven Term is a life insurance policy (DTC and ICC17DTC in some states, including NC) issued by the Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001 and offered exclusively through Haven Life Insurance Agency, LLC. In NY, Haven Term DTC-NY is 1017. In CA, Haven Term DTC-CA 042017. Haven Term Simplified is a Simplified Issue Term Life Insurance Policy (ICC19PCM-SI 0819 in certain states, including NC) issued by C.M. Life Insurance Company, Enfield, CT 06082. Police and driver form numbers and features may vary by state and may not be available in all states. Our agency license number in California is OK71922 and in Arkansas 100139527.
MassMutual is rated by A.M. Best companies like A ++ (Superior; Top category of 15). The grade is valid from 1 April 2020 and may change. MassMutual has received various ratings from other credit rating agencies.
Haven Life Plus (Plus) is the marketing name for the Plus skier, 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, provided by third party providers (partners). For more information on Haven Life Plus, visit: https://havenlife.com/plus.html