Riders can give policyholders additional benefits and increase peace of mind that if something goes wrong, there’s a Plan B.
When you buy life insurance, available riders vary by insurance company and policy, as do the rules for how they work. Costs also vary and depend on many factors, including your age, health and type of policy. We can’t list every option available, but here are some of the most useful riders.
Waiver of premium rider – you don’t have to pay the premium if you become totally disabled and can’t work.
Disability income rider – you collect regular income from the insurance company if you become totally disabled and can’t work.
Guaranteed insurability rider – lets you purchase additional life insurance coverage at a later date without undergoing a medical exam or providing any evidence about your insurability.
Term conversion rider – lets you convert term life into permanent life insurance without undergoing a medical exam.
Accelerated death benefit rider – lets you collect a portion of the death benefit if you
become terminally ill with a short life expectancy, such as one year.
Critical illness rider – pays a lump sum if you are diagnosed with one of the
critical illnesses specified in the insurance policy, such as cancer,
heart attack, stroke, kidney failure and others.
Accidental death benefit rider – if death is due to an accident this rider provides an additional benefit on top of the policy’s regular death benefit. The option is often referred to as double indemnity when the additional payout equals the original death benefit.
Return of premium rider – if you live to the end of the term,
in exchange for paying a premium, in most circumstances you get all your money back.