Life Insurance riders can enhance your existing coverage
Life insurance is one of the best legacies you can leave your family. How much insurance you need and what is the premium you can afford are important factors that you will need to consider when buying your policy. To make your decision complete, have you thought about life insurance riders?
A rider is an additional provision that you can back your life insurance policy with. When a rider is in place, it can either add or limit the insurance company's obligation to pay your death benefits, based on specific circumstances. Let's learn more.
Riders ' how they help, and how much they cost
To illustrate how a rider can help, consider this. Any life insurance policy will cover the risk of death, but fattening it up with a rider can even cover risks like terminal illness, disability, etc. by giving you the option of receiving your death benefits prematurely to pay for the associated expenses that come with terminal illness and disability. A particular rider will even waive off your premiums under such circumstances.
Riders will cost you an additional amount every month, usually about .1 to 5% of your premium costs. Considering the benefits and customization that certain riders offer, the extra cost is more than justified.
Riders that can enhance your existing coverage
Your insurance company will offer you a number of riders. You can do without some of them, but there are others that can enhance your policy considerably. Here's a list of the ones you should consider:
- Waiver of Premium ' If you become disabled due to which you may not be able to work and earn an income to help pay your premiums, a Waiver of Premium rider will bail you out. This rider will waive off your premiums and keep your policy in force for the duration of your disability. Depending on the terms on your rider, it can cover either a permanent or temporary disability, or both.
- Accidental Death & Dismemberment (AD&D) ' Since standard life insurance policies do not cover accidental death, many people opt for a separate AD&D policy. Instead of paying two full premiums on two full policies (life and AD&D), you can actually add an AD&D rider on your existing policy. The main advantages - you save on premium costs, and some insurance companies double the death benefit, if you have an accidental death.
- Family income benefit ' If you opt for this rider, your family will be paid the death benefit on your policy, and in addition, they will be paid their usual monthly income, either for a certain number of years, or for the period of coverage. Beneficiaries are sometimes given the option to receive this replacement income every month, or in one lump sum.
- Accelerated Death Benefit ' If you become disabled or are diagnosed with a terminal illness while the life insurance policy is in force, this rider will give you the option to collect all or part of your death benefit prematurely, in order to help pay your medical bills.
- Guaranteed Insurability ' If you are considering a
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Author: Denise
About AccuQuote:
AccuQuote is a leader in providing term life quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.