When it comes to life insurance it’s important to have a policy that has been tailored to your needs and offers you peace of mind. That’s exactly what an insurance rider does, since in essence it’s an add-on that allows you to customize your life insurance policy.
From return of premium to term conversion, below you will find some of the most useful insurance riders you may like to consider adding to your policy.
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.
There are other types of riders and many other ways to customize your life insurance policy. Get in touch with our experts at Delgado’s Insurance to get more information on this and other topics related to insurance.