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The Major Types Of Life Insurance Riders

The Major Types Of Life Insurance Riders
No matter who you are, how old you are, or what life situation you are currently in, there is a life insurance policy out there that will work for you. There are many types of life insurance and many ways you can customize your policy to fit your exact needs.
One way you can be sure your policy is all you want it to be is by adding one or more insurance “riders” to it. Here are some of the most commonly added rider options.

1. Accidental Death Benefit
While a separate accident insurance policy is one way to cover an accidental death, another option is to add an accidental death benefit rider to your life insurance policy.

This gives you additional compensation in the event of an accidental death, as opposed to a death by illness or old age, for example. Since accidents often take us by surprise and at the most inopportune moments, this is a good way to deal with any extra expenses.

2. Disability-related Riders
If you work a relatively dangerous job or have a disabling disease that runs in the family, a disability rider may be a good idea.

A disability income benefit can be added to a life insurance policy. It would provide at least a few months or more of disability payments if you become disabled and unable to work. This is in addition to your disability insurance or worker’s compensation payments.

Also, you can add a stipulation that waives your premiums during any period of disability – when you would have the greatest difficulty making your payments. This can prevent you from losing your whole or term life policy after paying on it for years.

3. Accelerated Death Benefits
If you are diagnosed as terminally ill, there is a rider that can be attached to your policy that would, in that event, allow early collection of all or part of your policy’s death benefit.

This will help pay for hospital bills and final expenses, while leaving any remaining benefit funds to help care for the bereaved or take care of mortgages, debts, and other expenses you may leave behind.

A long term care rider is a special kind of accelerated death benefit that permits use of your death benefit to pay for care in an assisted living facility or home health and hospice care.

4. Guarantee Of Future Insurability
Many policies automatically allow you to renew them without an increase in premium. But you may need a rider to guarantee that adding new coverage later on won’t change your rates.
Some of these riders could also prevent the need for a new medical exam or other screening steps before buying a totally new policy.

5. Change Of Policy Type
Finally, you can often add a stipulation that allows you to begin with a term life policy but then switch over to whole life at a later date. This is helpful when you can’t yet afford whole life but would like to lock in a lower rate while you are younger – plus you want to be covered in the meantime at least with a term policy.

There are a host of different ways you can adjust a basic life insurance policy to make it better fit your needs, preferences, and budget. To learn more, or to get started, contact Flagler County Insurance Agency today for a free consultation!