I Have Life Insurance, Why Do I Need A Rider?
A life insurance rider is the way insurance companies let you add additional coverage’s onto your life insurance policy at a reduced rate. If you are one of those people who feel they already pay too much for their life insurance you may not be aware of the additional benefits a life insurance rider can offer you and your loved ones. Sometimes the benefits received far outweighs the extra cost; learn all you can about the different types of riders that most insurance companies offer before shutting the door on adding a rider.
#1 – Spousal Rider
Insurance coverage for your spouse for less premium than an individual policy on your spouse. When you want to insure both you and your spouse but cannot afford the cost of a separate policy you may consider adding a spousal rider.
#2 – Accidental Death Benefit
The policy beneficiary receives an additional benefit if the policy owner dies from an accident. The amount of the benefit depends on the insurance company.
#3 – Terminal Illness
This rider allows the policy to pay out the death benefit early under certain circumstances. For example, in the case of a terminal illness.
#4 – Child Rider
Insurance coverage for your children. Again you cannot justify the money spent on a separate policy for your child but want them to be covered.
#5 – Guaranteed Insurability
Policy owner can purchase additional life insurance without the underwriting exams and questions. As a good will service to policyholders, insurance companies allow the policy owner to add on without the hassles of going through the underwriting process.
#6 – Long-Term Care
With this rider on your life insurance policy your monthly nursing home and/or home health care benefits will be paid for. This rider makes long-term care coverage more affordable.
#7 – Waiver of Premium
If you are disabled for six consecutive months or longer your premium payments are waived. This is a very nice benefit since disability can usually never be anticipated.
#8 – Estate Protection
Additional coverage is provided to pay for estate tax obligations; another good rider to add onto your life insurance policy.
We just explained 8 good reasons you may want to add a rider to your life insurance policy. Think about the possibilities that one or all of those riders will someday benefit you or your loved ones.