What are riders?
Riders are optional additions that you can choose to include in an insurance policy, which serve to enhance or modify the standard coverage provided. These riders typically offer specific benefits, such as increasing coverage limits, adding additional protections, or tailoring the policy to better fit your personal circumstances. Riders usually come at an extra cost that may need to be considered, however depending on the company and policy type, some riders such as “Return of Premium” and “Critical Illness Rider” may come included at no extra cost. It is important to note that costs can vary widely depending on the specific type of riders you choose, as well as the insurance provider's terms and conditions.
Common riders to ask about:
Child Rider: Provides a death benefit if a covered child dies during the rider's term, usually up to a certain age (age may vary) or until the child marries, whichever comes first.
Renewable Term Rider: Adds a term life insurance component to a whole life policy, providing additional coverage for a set period.
Accidental Death Benefit Rider: Provides an additional payout if the insured dies due to an accident.
Accelerated Death Benefit Rider: Allows the policyholder to claim a portion of the death benefit while still alive if they have a qualifying terminal illness. Terminal illness is usually, but not always, contributed to a 24 month period.
Critical Illness Rider: Provides a payout if the policyholder is diagnosed with a qualifying critical illness.
Return of Premium Rider: Returns a portion of the premiums paid back to the policyholder if the policy is canceled or at the end of the policy term.
Less common riders to ask about:
Guaranteed Insurability Rider: Allows policyholders to increase their coverage at specific times in the future without needing to prove insurability.
Family Income Rider: Provides monthly payments to beneficiaries upon the policyholder's death, aiming to replace the policyholder's income.
Cost of Living Rider: Increases coverage gradually to keep pace with inflation.
Waiver of Premium Rider: Waives premium payments if the policyholder becomes disabled or incapacitated.
Long-Term Care Rider: Provides benefits to help with the costs of long-term care such as nursing home facility, assisted living care, hospice, etc.