“Life insurance is one of the most important purchases you’ll make to protect your family’s financial future,” says Byron Udell, founder and CEO of AccuQuote. “So naturally, there are some things you need to consider to make sure your family has enough coverage, like personalizing your coverage with life insurance riders.”
When policies are sold at AccuQuote, they usually have the option of having these three common insurance riders attached to them. These riders are a great supplement to coverage and can increase death benefit as well:
1. Accidental Death Benefit (ADB) – Many people buy an accidental death benefit policy on its own, but attaching it as a rider to a term life insurance policy can be more effective. It provides additional coverage, up to double the amount of the original death benefit. This rider is usually available for a few extra dollars per month of coverage, which some people don't mind paying for. Many people have found that the rider came in handy when covering large hospital bills,
2. Waiver of Premium – The great part about this rider is that it comes free, if you opt for it at the time of application. If the insured becomes disabled for more than six months (which qualifies as a long term disability), the life insurance company will waive the premium payment until they are fit enough to work again. This is a great way to keep the policy in force despite the disability, and if you have the option to add this rider on your life insurance policy for free, don't think twice! Sign up right away.
3. Accelerated Death Benefit – This rider has come in handy at crucial moments, when a critical illness threatens to destroy not just emotionally, but also financially, by eating up into savings and investments due to the large medical bills that are usually incurred on the onset of such illnesses. If you are diagnosed with a terminal illness while the life insurance policy is still in force, this rider gives you the option to collect all or part of the death benefit while you’re still alive.
There are several other riders that come in handy while purchasing life insurance policies. You can cover your spouse and child with riders as well, which serves as a handy accompaniment solution for the whole family. Many people opt for child and spouse riders through group insurance at work. While there's nothing wrong with that (and by all means, you should get some if it's offered as a benefit paid for by the company), remember that individually owned policies work in your favor because you get to keep them for the entire term even if you switch jobs (or get fired). Some companies allow group coverage to be converted to individually owned policies, but the process is arduous and expensive.
Term life insurance policies may also allow something called the "Return of Premium" or ROP rider, which allows you to get back premiums paid into the policy at the end of the term if you are still living. This is a great way to get back what can sometimes amount to several thousands of dollars paid in premiums if you didn't end up needing the death benefit. It may hike up your premiums up to 30% more than a plain vanilla term policy, but can be worth it if you are looking for a way to be covered under a large but affordable term life policy but don't want your premiums to go down the drain.
“Choosing the right life insurance rider is important if you want to make sure your family is covered in any situation,” says Udell. “Licensed life insurance agents, like the ones at AccuQuote, can educate you on all of the life insurance riders available and help you add the right one on to your existing coverage.” Choosing the right life insurance rider to customize, increase or better define your coverage is easy with help and advice from AccuQuote.