What are some of the most popular life insurance riders?
There are many types of popular life insurance riders that can be added to your insurance policy. However, there are a few stand out and provide the most value. The following Living Benefits are some of the most popular riders we have seen.
An insurance rider is defined as “A rider is an insurance policy provision that adds benefits to or amends the terms of a basic insurance policy.” states Investopedia
There are many different living benefits you can get with life insurance, those that are riders or those that are included in policies. Here are some of the most common ones.
- Chronic Illness Rider -These advances are made so that you can use it for whatever care you may need due to the illness. Including Long Term care or any other medical bills or doctor visits, you’ll need during the time.
- Critical Illness Rider – These advances are made so that you can use it for whatever care you may need due to the illness. Including Long Term care or any other medical bills or doctor visits, you’ll need during the time.
- Terminal Illness Rider – If you are diagnosed with a terminal illness with 1 year or even two years with some carriers. Part of the death benefit can be advanced to you to use for expenses.
Return of Premium Rider
These riders are for term life policies. You are able to get your money back, whatever money is available to be returned. However, you must use this rider before the end of your term insurance. So if you have one week left on your policy and it’s about to expire with the rider you’ll want to get this process started to get your premium returned.
These riders are for additional coverage for children, it typically covers $5,000-$10,000. People can go higher but the highest we have seen is $25,000. Depending on the carrier, some carriers allow for the rider to be turned into the child’s own policy in the future.
Accidental Death Rider
This adds a larger death benefit. For instance, if you have $100,000 for your initial death benefit, and your rider has $200,000 for accidental death. The end result is a $300,000 insurance policy.