Can you Add More Insurance to a Whole Life Policy without going through underwriting?
There are a few reasons you may be interested in doing something like this. Let’s say you got the policy when you were 21. It’s a Whole Life Insurance Policy, and you recently started a family. Let’s say you have an underlying Medical Condition that you know will make it more expensive going through underwriting. Maybe it’s at the point where you won’t pass underwriting. There are riders that you can add to your policy that will allow you to get more coverage in the future without having to go through underwriting. This is called a Benefit Increase Rider.
How do these Riders Work?
First off, these riders must be applied when you get the policy. Meaning you can not go out and get this rider by itself, it must accompany a policy at purchase. Because it is a contract between you and an insurance company. These riders typically allow you to apply to increase the policy coverage every 3-5 years. The idea of this is to help keep up with inflation and an increased salary over a lifetime. Your agent should be able to help you with using your rider. You should also consult your agent to find out what your options are and what might best work for you.
How Much extra are these Riders?
The simple answer to this is – It Depends. It could be free to $100/Month+ It just depends on your policy, how high the death benefit is, and how much you’ll want to increase the policy in the future. Some insurance companies have restrictions on how many times you can increase your policy and how much you can increase your policy without going through underwriting again. Be aware of the cost and make sure you have all the information from the carrier and information that you need to accurately make a proper decision in a timely manner.
Here an example of what a $25,000 Death Benefit whole life policy with the rider for a 21-year-old male would cost around $32 a month. Keep in mind this is for a Healthy Male. Your actual results could vary, you should talk to an agent to get a quote.
Here is an example of what a $25,000 Death Benefit whole life policy with the rider for a 30-year-old male would cost around $46 a month. Keep in mind this is for a Healthy Male. Your actual results could vary, you should talk to an agent to get a quote.