What is are Life Insurance Riders?
The riders are basically an addition to one’s insurance policy that offers additional benefits normally not found in one’s original insurance contract. Or basically it is an amendment done to the original policy contract. Said additions are normally attached to the said policy and are in full effect. This may not normally found in almost all policies. This is simply because Riders do provide a sort of benefit to the said insurance policy owner, if this is chosen to be availed; an extra fee will be added to the said premium of the insured person.
How does it work?
Let us say that you currently have a policy under your name. You wanted to add added benefits to your current insurance policy. Then all you have to do is to pay for equivalent premium fee over your original premium fee. This will then give you instant benefits from your current amended insurance policy. However, when certain rider claim is made while your current insurance policy is still active, then a termination of your rider will follow. Bear in mind that insurance coverage, terms and condition and premiums for riders do vary from one insurer to another.
What are the different types of Life Insurance Riders?
Guaranteed Insurability Rider or Renewal Provision – This is the type that allows the insured person to purchase added coverage together with the original policy without the need of more medical examinations. This type is also known to be more beneficial if and when a vital change in your life happens, things like marriage, child bearing or increased in your income. One more advantage that this type brings is that it will allow you to apply for coverage without the need for providing insurability evidence. However, this type of rider can actually end at a certain age.
Double Indemnity or Accidental Death Rider – This is an addition that you can pay to protect you in case an accident will cause your death. However, this will only be given to the insured person once he/she dies from an accident related death.
Spouse Insurance Rider – This is being added and paid for your spouse.
Waiver of Premium Rider – Future premiums are being waived if the policy holder becomes disabled and loses his/her income due to his/her disability prior to a certain and specified age. Said premiums will be exempted until the person insured is ready to work again.
Child Term Rider – This gives the insured person a death benefit when his/her child dies on or before a given age. While, when the child reached age of maturity, the said plan can be turned to a permanent insurance coverage, and will multiply its face to about 5 times the original amount without needing medical examinations.
Long Term Care Rider – This offers a monthly payment to the insured person when he/she is compelled to receive a home care treatment of be required to stay in a nursing home.
Family Income Benefit Rider – This happens when the insured person dies. Said rider will give a regular and steady income to his/her family members. If you decide to get this rider, you need to specify the amount of time that your family will benefit from this.
Accelerated Death Benefit Rider – The insured person can use the death benefits under this addition once he/she is found out to be ill and his/her life expectancy is being shortened by his/her illness.
Return of Premium Rider – The goal of this rider is to return premiums paid by the insured person.