Your Life Insurance policy must match your lifestyle and your needs. And one of the best instruments to personalize your coverage is an Insurance Rider.
Insurance Riders are add-ons that offer extra coverage or amend the terms of a basic insurance policy. Below you will find some of the most common riders you can consider to customize your policy to your specific needs.
Waiver of Premium Rider
Allows you to stop paying your Life Insurance premium without your policy lapsing if you become completely disabled. It’s important to check the terms of the rider because the terms of what is considered complete disability may be very strict. The cost of this waiver will vary depending on your individual characteristics.
Return of Premium Rider
With this rider, you get all your money back should you live to the end of the term specified in your original policy. Keep in mind that in order to do this you will pay a higher premium, so you must weigh carefully the pros and cons. Also note that some companies write this benefit into the base policy, while others offer it as a separate rider.
Disability Income Rider
This add-on will allow you to collect a regular income should you become totally disabled and therefore unable to work. The rider specifies the amount of money you would receive, typically a percentage of the face amount which is payable every month. An aspect you should remember when considering this rider is that some variations of it pay out only if you become disabled as a result of an accident, while others also include sickness coverage.
Accidental Death Benefit Rider
This option is often called double indemnity, since provides an additional benefit to your policy’s regular death benefit in case you should die in an accident. Sometimes this rider includes additional payment if you lose a limb, and in that case, it’s referred to as accidental death and dismemberment, or AD&D. Keep in mind that insurers will consider your occupation when calculating your premium, so high-risk activities translate into a higher premium.
Term Conversion Rider
By adding this rider, you can convert term life insurance into permanent life insurance without having to undergo a medical exam. Usually there is a deadline to make the conversion, so make sure you understand the terms of your policy if you think you may be interested in making this transition in the future.
This guide has provided you with the basic guidelines to understand the Insurance Riders. However, it’s important to contact an expert to help you go beyond the elemental insurance concepts.
At La Popular Insurance we offer auto, home, commercial, health and life insurance. With 26 years of experience, we offer extremely qualified assistance at an affordable price. Contact us today by email or telephone ( 323-566-5063 , 562-928-1960, 323-773-9793 ) to discover more about our wide range of services.