Policy Riders And The Optional Benefits Of Life Insurance

Riders are sometimes referred to as optional benefits of life insurance plans. A rider is an additional supplementary plan added to your already existing insurance policy, it aims to increase the coverage and protection provided by the plan by extending its approach and overall cover up. They also help you save up on your taxes and act as an all in one plan. 

The best thing about riders is the flexibility and the wide variety of options it has to offer. There is a rider for every possible area your plan is not covering and it is tailor made therefore you can customize it according to your current or long term requirements and can terminate it any time, all these are optional benefits which most of the policyholder’s seek.

Important Policy Riders and Their Benefits

Insurance riders are very cost effective and easy to manage which makes them a good and popular choice amongst investors. Although there are multiple policy riders providing numerous benefits, here is a list of the most sought after riders, you can invest in them too, according to your needs.

• Accidental Death Benefit

If the insured dies in an accident, this provision pays an additional benefit. For certain sorts of incidents, this sum could be twice or triple the policy's face value. Usually, there is an upper age limit, such as 65 but this rider can be very helpful in times of need. 

• Guaranteed Insurability Rider

This is a rider that allows the insured to purchase a certain amount of additional protection at regular intervals up to a certain age limit, such as 40. To purchase coverage, the insured does not need to provide proof of insurability. This rider may provide special purchase opportunities during particular life events, such as weddings or the birth of a baby. 

• Cost Of Living Rider

This rider permits the policyholder to buy greater coverage each year in order to keep up with escalating living expenditures. The maximum amount that can be purchased under this rider is set by the cost of living index. This is typically used to obtain life insurance upgrades at a low cost and without having to provide proof of insurability.

• Payor Benefit Rider

This rider is frequently added to a child's insurance, saying that any premiums are automatically waived if the individual paying the child's premiums dies or becomes permanently handicapped before the child reaches the age of majority.

• Spouse Benefit Rider

This rider guarantees level term coverage for an insured's spouse for the rest of their lives. A clause that authorizes the spouse to move to lifelong life insurance policy without producing evidence of insurability is frequently included as well.

• Children’s Rider

This rider covers the life of an insured's children for a set period of time. In most cases, there is only one premium rate, and newly born or adopted children can be added to the policy without raising the premiums. Typically, there is a clause that allows each child to change to permanent coverage sans submitting proof of insurability.

• Rider For Mortality Deduction Charges Waiver
  

This is similar to the waiver of premium benefit, although it's more common with flexible premium universal life insurance.

• Rider For Monthly Disability Income Benefits

After an initial waiting period, this benefit pays out a monthly stipend to insureds who are totally incapacitated. It is typically calculated as a percentage of the death benefit of the insured.

• Premium Waiver Rider

As the name Premium Waiver suggests, this rider guarantees you that if there occurs a case which leaves you financially disabled to pay more premiums, your policy will not be terminated and you will receive a premium waiver.

•  Return Of Premium Waiver

The return of premium waiver acts as a boon in case you have lost all your funds or are running short of funds due to an emergency, in this case even the premium amount paid is returned back. 

Conclusion

Many times, standard life insurance may not be enough, and it's always a good idea to make sure your insureds' needs are met. You'll be able to grow your income and provide the best protection for your family if you understand the riders and supplementary benefits available for life insurance.

Also read 

Riders Meaning In Insurance- Rider Meaning In Life Insurance

Different Riders To Opt With Your Term Insurance Plan

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.