Insurance riders are separate plans, which are purchased with a set premium, that are attached to your primary insurance coverage to provide additional benefits. These riders can provide various forms of additional protection. The following are an explanation of a few of the most common riders:
Waiver of Premium - Guarantees that future life insurance premium will be paid in the event that the insured becomes disabled prior to a specified age.
Accidental Death (or Double Indemnity) - If the insured should die as a result of an accident, an additional amount of death benefit will be paid out to the beneficiary.
Disability Rider - Upon a qualified disability, payments of income can be paid to the disabled owner in the form of an annuity for a set period of time.
Child Coverage - Provides a death benefit in the event of a child's death prior to a specified age.
Guaranteed Insurability - Allows the insured to purchase a predetermined amount of coverage at certain times in the future without having to be medically insurable.
Cost of Living - Permits the policy owner to purchase an inflation adjusted one-year term insurance equal to the percentage change in the Consumer Price Index with no evidence of insurability.
Long Term Care - In the event an individual should be required to go into a nursing home or receive home care, an annuity can be paid out to the long term care provider to defray some of the nursing care payments.
Accelerated Death Benefit - Allows terminally ill insured with a life expectancy of usually fewer than two years to receive all or part of the death benefit.