Insurance Advisor, Lordship Insurance Services, California
Many Insurance companies offer what is called a base policy (the policy you originally buy such as a whole life policy) and to that base policy they offer additional coverages in the form of riders. You can get different types of riders such as; term riders which can offer additional death benefit coverage on the base policy; paid up addition riders which can offer amounts of paid up coverage; waiver of premium which will pay the premiums should the insured become unable to make the payments. There are a lot of different types of riders you can purchase to make your base policy even better.
Most life insurance riders have an additional cost, and by adding a rider onto a basic life insurance policy, you can customize the policy to better suit your needs.
Some riders are very affordable. E.g. A $10,000 child rider will cover all the children in the family for approx $75 per year. Another low cost rider is an accidental death rider, which will cause the policy to pay double if death is due to accident.
Some more costly riders are Disability Income riders, which essentially act as Disability Insurance policy tacked onto your Life Insurance; or a Return of Premium rider that will enable a Term policy to return all your premiums if you are alive at the end of the term.
Some riders are included in the base price. Many companies offer an accelerated death benefit in case of terminal illness at no extra cost. Some include living benefits, such as being able to use the death benefit while still alive if diagnosed with a chronic or critical illness.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Carriers offer life insurance coverage in exchange for a premium. On top of it's main structure, carriers may offer extra benefits to add to it known as riders. Carriers may charge an additional fee added to the premium when certain riders are added to a policy. Not every carrier will offer every rider on each policy.
The most common riders people add to their life insurance policies are:
1) Term Insurance Rider
2) Accelerated Death Benefit Rider
3) Disability Waiver of Premium Rider
4) Long-Term Care Rider
5) Accidental Death Benefit Rider
6) Guaranteed Insurability Option Rider
7) Disability Income Rider
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Some riders are very affordable. E.g. A $10,000 child rider will cover all the children in the family for approx $75 per year. Another low cost rider is an accidental death rider, which will cause the policy to pay double if death is due to accident.
Some more costly riders are Disability Income riders, which essentially act as Disability Insurance policy tacked onto your Life Insurance; or a Return of Premium rider that will enable a Term policy to return all your premiums if you are alive at the end of the term.
Some riders are included in the base price. Many companies offer an accelerated death benefit in case of terminal illness at no extra cost. Some include living benefits, such as being able to use the death benefit while still alive if diagnosed with a chronic or critical illness.
The most common riders people add to their life insurance policies are:
1) Term Insurance Rider
2) Accelerated Death Benefit Rider
3) Disability Waiver of Premium Rider
4) Long-Term Care Rider
5) Accidental Death Benefit Rider
6) Guaranteed Insurability Option Rider
7) Disability Income Rider