Whole Life Insurance Riders

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Riders are attachments to policies that are considered a benefit if an event triggers the rider parameters. Read below and see if any of these riders are on your current life insurance policies. There are costs associated with many of these riders so decide what you would like and make sure to speak to a broker when dealing with this important matter. Some riders are redundant and some almost are never triggered but it costs you over the policy term which could be used for another purpose.

Whole Life Insurance Riders 

Riders are attachments or special amendments that are adding to the core policy that add specific coverage at the request of the policyholder. Riders usually add a small additional cost to the core policy.

Accidental Death Benefit Rider

When added to a life insurance policy, this rider secures an extra amount of money paid to the beneficiary/beneficiaries if the policyholder dies as a result of an accident. Often referred to as “double indemnity,” this life insurance rider usually doubles the amount of the death benefit.

Waiver of Premium Rider

This life insurance rider waives the responsibility to pay the premium when the policyholder becomes disabled, during the length of time the policyholder is disabled. Premiums are to be paid, but if the insured has become disabled and suffers from loss of income as a result, the waiver of premium life insurance rider will guarantee the active status of your life insurance even if the premiums are not paid. A similar life insurance rider that is especially beneficial is the disability income rider, which secures a monthly income should the insured become permanently disabled.

Accelerated Death Benefit Rider

This life insurance rider allows the insured to collect either all or a portion of their life insurance policy while they are alive. The insured can claim this rider if he/she were to be diagnosed with a terminal illness, requires long-term care or admission to a nursing home. With these conditions, the insured would most likely be unable to continue work and earn an income. This life insurance rider can help relieve some of the financial burden and medical costs.

Renewal Provision – Guaranteed Insurability Rider

This life insurance rider guarantees your life insurance policy’s renewability at the end of its term (assuming you purchased a term life insurance policy and not a permanent whole life insurance policy). Upon renewal, you can add coverage to your policy and will not need to offer further proof of your insurability. However, consult with your insurance agent to find out whether your provider grants this rider with conditions (does it expire after a certain age? Is renewability only valid within a set time period?). This life insurance rider is especially valuable because a term life policy may expire before the policyholder has passed on, but at a time when the policyholder’s condition is uninsurable.

Family Income Benefit Rider

This life insurance rider provides a continuous monthly payment to your beneficiaries upon your death. Rather then receiving one lump sum, your beneficiaries can receive the death benefit in monthly payments, which means a reliable source of income. When adding this life insurance rider, the insured (you) chooses the length of the term you would like to provide this income security.

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