Types of Life Insurance Riders
Life insurance provides essential coverage, but there are options to customize your policy to your needs. These options are known as life insurance riders.
Life Insurance
Riders Explained
You can supplement your life insurance coverage by adding a rider. Your life insurance policy alone won’t cover you in case of some unexpected events, like a terminal illness. You can add a rider to cover certain events for an additional monthly premium payment.
Family Insurance
Riders
Life insurance is focused on caring for your family when you pass away. Family insurance riders offer additional coverage for family members in difficult situations. Essentially, a family insurance rider will provide death benefit coverage if someone besides you, the policyholder, passes away.
Accelerated Death Benefit Riders
Sometimes, you need your life insurance coverage rather than keeping it in your death benefit. Accelerated death benefit insurance riders take money from the death benefit to pay your medical expenses if you have a terminal illness.
When you purchase this rider, you must have a doctor’s confirmation of your terminal illness before you can start receiving funds from your death benefit as-needed, up to 80% of your total death benefit. You can use this rider to pay for care, such as stays in a hospice or nursing home, or it can also be used for vacations and enjoyable things.
Critical Illness
Riders
Critical illness riders pay out your death benefit early while you’re living to cover treatment for certain illnesses. Your policy will cover pre-specified illnesses like heart attack, cancer, stroke, kidney failure, ALS, and other critical conditions. There are multiple types of critical illness riders.
- Chronic illness riders cover the cost of daily living expenses if you’re unable to do them yourself.
- Long-term care riders also cover daily living expenses, but it will continue to cover you even if your death benefit is used up.
There is also a waiver of premium disability rider, which will stop your premium payments without penalty if you have a disability and are unable to work.
Structure
Riders
Not all riders are based on specific circumstances, sometimes, they change how you receive your death benefit.
For instance, the return-of-premium rider pays back your premium payments if you outlive your term life policy, the term conversion rider converts your term life policy to whole life, and the guaranteed insurability rider increases your death benefit with major life benefits.
Your Insurance Needs Are Our Priority
At Better Insurance Management, we do everything in our power to get you the best coverage possible. To learn more about your life insurance options, call us at (732) 458-5000.
