Riders: Another Form of Coverage
Riders are additional benefits you can add to your life insurance policy. These riders provide coverage not normally provided by your standard life insurance policy. Typically, these riders will come with an additional cost. There are several different kinds of riders. What riders are offered and their specific terms will vary from company to company. In this article, we will go over some of the most popular and what they cover.
Waiver of Premium
This rider will pay your premium for you if you become disabled and cannot work. This will prevent your policy from lapsing if you can no longer afford to pay the premium. It is important to note that this waiver typically expires somewhere between age 60 and 65. Furthermore, most insurance companies also have a six-month waiting period before you qualify for your waiver of premium benefits.
Term Insurance Rider
This rider allows you to purchase term insurance policies in addition to your base policy. You can choose to add on increasing, decreasing, or level term policy coverage. This rider will allow you to increase your insurance value for a certain period, as you find it necessary. Many companies limit how long they allow the term riders to stay in effect. Typically, the coverage age limit falls somewhere between age 65 and 75.
Accelerated Death Benefit Rider
The exact provisions of this rider will differ from company to company. Generally, this rider will pay a portion or the entirety of the policy’s face value in the event that you are diagnosed with a terminal disease or some other aliment that will affect your longevity and quality of life. Some circumstances that could trigger an ADB could be the diagnosis of cancer or heart disease, an organ transplant, or entering nursing home care. If you trigger your Accelerated Death Benefit you can choose between a lump sum payout or a series of payments. The amount paid out to you will vary and will differ if you took out any loans on the policy. Your payout could range from anywhere between 25% and 100% of your policy’s face value.
Long Term Care Rider
A Long-Term Care Rider is another version of the Accelerated Death Benefit Rider. If you purchase this policy, you will be able to use your death benefit to pay for long-term care expenses. The amount allotted for your LTC benefit is based on your age, gender, and health at the time you purchase the policy. This rider will allow you to protect your estate from being depleted due to long-term care expenses. It will also provide a tax-free benefit to your heirs if you do not need long-term care services.
Accidental Death Benefit Rider
This rider will increase your death benefit in the instance of your death resulting from an event of Arizona car accidents – Folger Law Firm injury attorneys reporting. The definition of “accidental death” will differ for each company. Typically, the definition requires that your death is the result of some sort of accidental bodily injury. The insurance company will also stipulate how long after your accident you must pass for the accident to count as the cause of your death. This time-period is somewhere between 90 and 120 days after the accident.
If you attach a spousal and/or child rider to your policy it will provide additional coverage for that person. For example, if you have a spousal rider and your spouse passes, you will receive a death benefit from the rider. The same goes for any children you include on the rider. A child rider usually cover all of your children, up until they turn 18.
There are so many options available to extend your life insurance coverage. If it is something that interests you, meet with a qualified insurance agent who can analyze your situation. From there they can help you find the insurance policy and riders that will fit your budget and life goals. The sooner you buy your insurance the better, it is something that will get more and more expensive as you age.
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