Why So Many Riders?

First things first: what is a rider? A rider is an additional benefit that is attached to your insurance policy, which can be added for an additional price and gives you extra protection. There are many different riders that can be added to a policy. It is important to weigh the cost of a rider against the benefit it provides and determine if the extra cost is justified.

Types of Riders

1. Guaranteed Insurabilty Rider: allows you to purchase additional coverage without having to take another medical examination or having to prove insurability.
2. Spouse Insurance Rider: allows spouse to purchase term insurance for an additional premium.
3. Accidental Death or Double Indemnity Rider: pays the death benefit as well as an additional benefit, usually double the face amount, should the insured die as a result of an accident.
4. Waiver of Premium Rider: waives future premiums should the insured become permanently disabled or lose their income as a result of injury or illness prior to a specified age.
5. Family Income Benefit Rider: provides the family with a steady income for a determined number of years.
6. Accelerated Death Benefit Rider: pays death benefits if the insured is diagnosed with a terminal illness that will reduce their lifespan.
7. Child Term Rider: provides a benefit in case a child dies before a specified age. If the child reaches a certain age (18 years old) the term plan may be converted into permanent.
8. Long Term Care Rider: pays monthly payments should the insured require long term care, such as home care or nursing home care.
9. Return of Premium Rider: the insured pays a marginal premium, and at the end of the term the premiums are paid back in full. Should the insured die, the premiums will be paid to the beneficiaries.