Common Life Insurance Riders

Life insurance riders are extra coverages that can be purchased with a basic life insurance policy to enhance the standard coverage. They help you to tailor a policy. There are a number of life insurance riders which you choose as per your requirements.

Also Read:- What are Riders in Life Insurance? What are their benefits?

Common Life Insurance Riders

Here are the six common life insurance riders and what they're covering.

1. Guaranteed Insurability Rider

This rider enables you to buy extra insurance coverage for the specified time without further medical testing. An assured insurability rider is more useful where there has been a dramatic shift in the conditions of your life, such as your child's birth, marriage, or a rise in your salary.

2. Accidental Death Rider

An accidental death driver pays an extra death benefit if the insured dies as a result of a crash. Normally, the extra payout paid on death as a result of an injury is equal to the face value of the initial policy, which doubles the benefit. In the case of death due to accidental bodily harm, the spouse of the insured receives double the value of the insurance.

3. Waiver of Premium

Under this rider, future premiums shall be waived if the insured becomes chronically injured or loses his income as a result of accident or disease prior to the stated age. The disability of the main breadwinner can have a detrimental impact on the household. In these cases, the rider exempts policyholders from paying the premium owed on the basic policy until they are able to operate again.

4. Family Income Benefit Rider

In the event that the insured dies, the family income insurance provider will provide a constant flow of income to the family members. When you buy this rider, you need to decide how many years your family will enjoy the value. The merit in making this rider is obvious—in case of death, the remaining family would have less financial difficulties due to the regular monthly income of the rider.

5. Accelerated Death Benefit Rider

Under the case of an accelerated death benefit rider, a covered individual will take advantage of the death benefit if they are born with a fatal disease that will significantly shorten their lifetime. On average, insurers advance to the insured a share of the death insurance from the basic scheme. Insurance providers can deduct the amount you get, plus interest, from what your beneficiaries will receive on your death.

6. Return of Premium Rider

You pay a marginal premium under this rider, and at the expiry of the agreement, the premiums will be paid to you in full. In the case of death, your beneficiaries will collect the balance of the premium paid. Insurers offer premium riders with plenty of combinations so make sure you recognize the rider's term before you purchase it.

You May Also Like to Read:- What is Accidental Death Insurance Rider?

How To Choose The Right Life Insurance Riders?

Conclusion

Most insurers don't allow you to tailor the insurance policies to your particular preferences, but riders will help configure coverage. Always make sure to read the fine print before you apply a rider to your life insurance policy. If necessary, sit down with the insurance agent and determine the advantages of riders and then buy the one that is better tailored to you and your family.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.