These life insurance riders could save your entire nest egg.
Particularly if you become disabled or critically ill and can not work. Life insurance is more than just a death benefit. You can use these life insurance riders to really turn your policy into a machine that works for you, even while you are alive.
Let’s take look at how these riders work and how they can benefit you.
1. Disability Income Rider
A Disability income rider can help you to receive a monthly income from your life insurance company if you become disabled for a certain period of time after you have signed up for the life insurance policy. The monthly income provided by the insurance company could typically pay a certain percent of the face value of your insurance policy. Premiums for the insurance policy could also be also waived in some cases. You would receive a fixed income every month as long as you remain disabled and cannot actively work and earn income unless it is stated in your policy. The life insurance policy would remain active and if you die your beneficiary could receive the face value of the policy minus any loans or benefits. If your insurance policy is participating then, you would also continue to get dividends as bonuses.
2. Critical Illness Rider
Critical illness rider protects your against the expense of treatment, if you are suddenly diagnosed with a terminal illness. The insurance company will pay all your medical expense prior to your death. Most of the Critical illness riders cover cancer, coronary artery bypass, heart attack, kidney/renal failure, major organ transplant and paralysis stroke. Critical illness rider is an essential rider that you need to consider in your insurance policy as no one can predict medical conditions and our current life may increase our dependence to medicines in the future. The expenses of medical treatments are also rising, so if you are insured against unforeseen medical emergencies in the future then you can have complete peace of mind.
3. Return of Premium Rider
Return of Premium (ROP) reduces your net cost on the amount insured to zero if a death benefit is not paid at the time your policy ends. The riders does exactly the name. It will return all premiums pad in a term life insurance policy if the insured does not die during the term.
4. Term Conversion Rider
Term conversion rider can convert all of the insured amount and the death benefits to a permanent life insurance policy. You can convert your existing insurance policy and associated riders to a term conversion rider if your insurance company allows that types of merging. You don’t need to provide a proof of insurability if you are opting for the term conversion rider; It is a smart move to make your insurance policy more beneficial to you in the long run. The Only drawback of the term conversion rider is the cost of the premiums you need to pay and it is three to seven times higher than the average insurance policy.
5. Guaranteed Insurability Rider
If you include guaranteed insurability rider in your life insurance quote then you can purchase additional life insurance coverage in the future. You also do not need to provide evidence of insurability to purchase additional life insurance coverage. Guaranteed Insurability Rider explicitly specifies dates and only on those dates you can buy additional life insurance coverage’s. When you get older the dates of making purchasing additional insurance coverage’s also gets lesser and less till, you are no longer able to add additional life insurance coverage. You also have the limitation of the option amount in guaranteed incurability rider which prevents you from buying life insurance a policy more than a particular amount on the option dates.
6. Waiver of Premium Rider
Waiver of Premium Rider is more or like the disability income rider, and it takes the obligation of making more premium payments if the policyholder becomes seriously ill or disabled. The policyholder in this situation is unable to do any productive work and earn an income or unable to pay the monthly policy. Monthly premium payment is waived, but the insurance policy will remain active till its maturity. Insurance companies place high requirements for the policyholder like he needs to be young and healthy. Most Insurance companies also charge a premium for this rider.
Give us a call
You can call any of our agents to find out more about these life insurance rider and how much they would cost to add to a new life insurance policy.