Top 5 Most Useful ‘Riders’ For your Life Insurance

November 22, 2012

Medical Insurance

Your Life Insurance

Your Life Insurance

Life Insurance offers peace of mind to you and a source of income for your family in case you pass away unexpectedly but this sometimes comes at a high cost. Life Insurance premiums are high because this is the one type of insurance that always has to pay out but there are ways to reduce costs as well as ways to sidestep the huge fees for a long time. Of course you can find a better deal by getting more than one whole life insurance quote but, sometimes, there is that one option that you really need but isn’t included. That’s what riders are for.

Riders are add-ons for your policy that raise the cost of premiums but add special benefits. While adding a disproportionate number of riders can lead to huge insurance premiums adding a small number of those that you feel are really necessary can give you peace of mind as well as, sometimes allowing you to cash in your policy while still breathing. Here are 5 quite useful riders to tack onto your insurance policy.

Disability Payout

Disability riders come in two variants, lump sum disability and disability income. The first one pays out a large sum of money to a person if they have become permanently disable in some way. A variant of this is the dismemberment rider, which pays a sum even if losing a single limb. The second pays an allowance of sorts to the policyholder for the rest of his life.

Guaranteed Extra Insurance

This rider guarantees that you will be able to extend your coverage or re-insure without having to pass another examination (therefore at a similar rate). It is especially good for people with a family history of middle or old age illnesses.

Term Conversion

This option allows you to switch your term insurance after its expiry with a whole life insurance policy without forfeiting all the money invested into your insurance so far. There usually is a time limit for selecting this rider.

Accidental Death

This add-on offers extra money to your family if you die in an accident, up to double the amount on the initial policy. Because accidental deaths are common to warrant consideration but not frequent enough for companies to stop offering this type of policy this one is quite common.

Terminal Illness

This rider gives you a part of your life insurance before dying in case you get a terminal case of one of several specified illnesses. This can help avoid getting your family deep into debt with medical bills.

Thinking about death and putting a financial value on it isn’t something that you likely want to do but sometimes it pays to think ahead of time so, if you’re getting life insurance make sure to take a look at all available riders and pick the best for you (if any).

Top 5 Most Useful ‘Riders’  For your Life Insurance


This site is for information and support only and NOT a substitute for professional diagnosis and treatment!
Life Insurance

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