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RIDERS, RIDERS, RIDERS

WHAT ARE THEY?

  • Riders are optional coverages or features added to your life insurance policy. Some are included and some come at extra cost depending on the type of plan and rider. They can add more value to your policy and provide benefits while you are living.

Most Common Riders

  • Accidental Death and Dismemberment Rider

    • ​Pays an additional amount of death benefit if insured passes away in an accident. Typically is equal to the amount of the original death benefit doubling your death benefit. I.e. If I have a $10,000 policy with a double Accidental Death Rider then my beneficiary will receive $20,000 if I pass away in an accident.​​

  • Accelerated Death Benefit Rider

    • Gives the insured access to the benefit funds prior to passing away in the event the insured is diagnosed with a critical, chronic, or terminal illness. Whatever funds are accessed through this rider are not available when the insured passes.​ I.e. If you have a $10,000 policy and advance $5,000 via the accelerated rider you will have no more than $5,000 remaining in the policy to be paid as a death benefit.

  • Long Term Confinement (also called Long Term Care)

    • Offers payments if the insured has to stay at a Nursing home or long-term care facility.​

  • Return of Premium Rider

    • ​Pays back all premiums paid during duration of policy. Rider may also give you the option to forgo the return of payments and instead turn them into a paid up permanent policy without further medical questions or exams. Can be particularly valuable to those who are young with a term policy and wish to convert it into a permanent policy when term expires.​​

  • Guaranteed Insurability Rider

    • This rider is very valuable if you have history of health concerns or are at a higher risk for health issues. This rider allows you to purchase extra insurance within a specified period of time without further medical questions or exam.​

  • Family Income Rider

    • ​Pays an income to family members if the insured passes away. The amount and duration of payments are predetermined by the insured.

  • Waiver of Premium Rider

    • Pays for life insurance premiums (essentially waives premiums) if the insured becomes disabled or can no longer work due to illness or injury prior to a certain age. Exempting the policy holder from being required to pay premium payments until the ability to work is regained. Each carrier may have a different definition of what would qualify as "disabled" and activate this rider. ​

  • Term Rider

    • ​Typically on permanent policies, this rider allows you to have additional coverage at the beginning of the policy, but when the rider expires the permanent coverage will remain in place.

  • Child Term Rider

    • Pays death benefit if child dies before certain age. Depending on the company it is possible, after the rider expires (when the child reaches maturity age), that the term policy may be converted into a permanent policy free of medical exams.

  • Renewable Term Rider

    • Renewable term riders can be added to permanent policies to provide extra coverage for a limited time. Your term policy could also have a renewable term added onto the end of your policy so that it automatically renews at a higher premium for limited number of years.

  • Term Conversion Rider

    • Allows you to convert your term insurance into a whole life insurance policy. The terms of when you can convert differ from policy to policy ranging from sometime before the end of the policy to as the policy expires. The perk is you are able to convert term coverage to permanent coverage without going through the underwriting process again. 

  • Critical Illness Rider

    • Some carriers and policies include this rider with the Accelerated Benefits Rider and some do not. A critical illness does not have to be terminal, but is typically expected to shorten life expectancy. This benefit allows a portion of the death benefit to be accelerated to help with care.

  • Charitable Giving Rider

    • Allows you to donate a portion of your life insurance benefit to charity. Your insurance company will donate an amount equal to a percentage of your benefit as well.

Riders can be confusing, let one of our knowledgeable brokers make it easy for you.

Riders
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