Riders Let You Customize Your Life Insurance Policy
Are you concerned that you may want to buy more life insurance in the future but poor health may prevent you? A guaranteed insurability rider lets you buy additional insurance without a medical exam or evidence of insurability. Have you ever thought about how you would pay your premiums if you became disabled and couldn’t work? A waiver of premium rider would allow you to forego premium payments if this happens. After sitting down with your agent and doing your homework, you think you’ve finally found the perfect life insurance policy that fits your budget and desired length and amount of coverage. But you’re not finished yet. With an array of choices, carriers let you add riders, sometimes at no charge, that allow you to customize your policy to meet your unique needs. Whatever your concerns or needs, there is a rider for you. Consider the following popular riders.
- Term conversion rider
Term life insurance is especially appealing to people who want inexpensive coverage but currently may not be able to afford a permanent policy. As needs change over time, however, a term policyholder may decide it’s necessary to buy a permanent policy. A term conversion rider enables the policyholder to convert a term policy into a permanent one by a certain deadline without undergoing a health exam.
- Accelerated death benefit rider
With an accelerated death benefit rider, a living policyholder can collect a portion of the death benefit if he or she is terminally ill and expected to die within one year. This rider is typically offered at no charge and can be used as the policyholder wishes, but the proceeds may be capped at $500,000.
- Critical illness rider
If the policyholder is diagnosed with or suffers a critical illness specified in the policy, such as cancer or a heart attack, the carrier will pay a lump sum. The money can be used to pay medical bills or at the policyholder’s discretion.
- Accidental death benefit rider
This rider provides for a payment in addition to the death benefit if the policyholder dies in an accident. If the additional sum equals the death benefit, it is called a double indemnity. If you survive but are dismembered, you may also be able to collect money.
When you buy a life insurance policy you could be paying premiums for 30 or more years. Life insurance is a commitment and it’s critical that you research, understand your options, and purchase a policy that meets and anticipates your needs. Should tragedy strike riders allow you and your family to have that extra peace of mind, customized to meet your expectations.
Are you ready to buy peace of mind? Visit Levineadvisors.com today to find an experienced agent who, at no cost, can help you find the right policy.
*The material provided in this article is for informational purposes only. We do not provide legal, tax or accounting advice. Please contact your own advisers for legal, tax and accounting advice.
