life insurance coverage

What Are Life Insurance Riders?

Life insurance provides you with coverage that protects your loved ones financially if you happen to die while the plan is active. If you want to get more from your life insurance, you can also purchase life insurance riders that expand your coverage. 

To learn more about life insurance riders, keep reading. 

What Is Life Insurance?

Life insurance policies are contracts that guarantee a death benefit payment when the insured person dies. The policyholder decides who receives the death benefit payment when signing the contract. In some instances, the beneficiary can be changed during the life insurance policy’s term. 

What Are Riders?

Riders are supplemental coverage options that are offered by insurance companies. Rather than purchasing an additional policy, riders allow you to expand your coverage within the policy. Some riders are included for free, but most cost extra. 

Are Riders Worth It?

When it comes to life insurance coverage, some riders can be incredibly helpful. For example, critical illness insurance riders can pay out accelerated benefits while you’re alive to cover treatment for critical illnesses. Some illnesses covered by this rider include heart attack, cancer, stroke, kidney failure, and other critical conditions that could limit your life expectancy. 

There are also family insurance riders, accidental death, dismemberment riders, and accelerated death benefit insurance riders. Here is a bit more about each one. 

Accelerated death benefit insurance riders

These riders take money from the death benefit to pay your medical expenses if you have a terminal illness. You’ll need to be diagnosed by a doctor to confirm that you’re terminally ill and have 6-12 months to live if you want this rider to payout. This rider is helpful if you need help covering the cost of end-of-life care, such as nursing home care or hiring a private caretaker. 

Family insurance riders

These riders provide additional coverage for members of your family. You pay extra to have the policy pay out a death benefit if a family member dies. This can be helpful if your spouse doesn’t have life insurance of their own. You can also cover children, though this often isn’t necessary. 

Accidental death and dismemberment riders

These riders are for people who live risky lifestyles. This includes people with dangerous jobs and hobbies. The rider will pay out money from your death benefit if you lose a limb or digit in an accident. If you die, it’ll also payout to your beneficiaries. 

Find Life Insurance With Riders

If you are shopping for a life insurance policy with supplemental coverage through riders, start working with an insurance agent. The talented professionals at Senior Benefits and Health Services can help you get started with a free quote on coverage in your area.