Life insurance riders are meant to deliver additional benefits through the life insurance policy. The insurance policy should be selected as per the number of years, the insurance premium and your personal needs. If you go for a basic life insurance policy, you will get common features. By going for add-ons, the coverage will be increased and it is possible to include additional risk factors. There will be great peace of mind when you can settle for the most appropriate life insurance policy as per your needs.
What is a rider on a life insurance policy?
The additional benefit that you get through the life insurance policy is called a rider. In other words, the existing life insurance policy will deliver more power through the life insurance policy rider. In fact, you will be able to customize the insurance policy as per your family needs.
By choosing a special rider, you will get insurance coverage for some kinds of diseases as well. In this process, you will want to pay an additional premium. With the inclusion of every new rider, the insurance policy premium will increase.
The policy cost will change based on the age, occupation, lifestyle, gender and past medical history.
What kind of additional benefits can they provide?
If you choose a ‘waiver of premium rider’, you will not want to pay the premium when you become totally disabled. However, the waiver will expire after 60 or 65 years.
The insurable guarantee rider will help you go for insurance after the expiry without undergoing a medical exam. Thus, you will not want to provide any evidence of insurability. As you are not in control of your health, you should choose the rider so that you will get insurance plan after the expiry of the current plan without any issues.
Term life insurance cover is different from permanent life insurance cover. You can convert the existing term life insurance cover into permanent cover with the help of additional rider. The term conversion rider will help you in this direction. The rider is beneficial for young people who start their career and for families who would like to go for life insurance policies but fail to manage sufficient money to go for permanent life insurance. You will be able to change the current term insurance plan into permanent insurance policy before the deadline by exercising the rider.
The accelerated death benefit rider is the most common rider offered by most of the insurance companies. you will be able to collect a portion of the death benefit when you become terminally ill and the life expectancy comes down to one year. Thus, the proceeds generated in this process can be used to manage medical expenses or living expenses as per your needs.
The insurer will pay a lump sum if you are diagnosed with critical illness. Certain illnesses such as cancer, heart attack and kidney failure will have a drastic impact on your life. These illnesses will be covered by the rider so that you will get money which can be used to cover the treatment.