What are the types of Riders that I Can Get in Life Insurance?

You've decided on Whole Life Insurance because you want to know that everything will be okay. But what if you become disabled and can’t work? Your policy didn't have a provision for that. Let's talk about some of the additional options you have when purchasing life insurance that take care of even your most terrible fears.

What is a Rider? — A Rider is an alteration to an existing life insurance policy that allows you to increase the coverage of your policy in certain conditions and under certain terms. Any changes set forth by a Rider take precedence over the original policy.

Accidental Death or Dismemberment Rider — The Accidental Death or Dismemberment rider, often referred to as a double indemnity, offers special benefits to you or your heirs should you be dismembered or killed in an accident. The cost is approximately $1 to $2 dollars per $1000 coverage, depending on the insurance agency you sign with, and the payout to your heirs is the double the face value of your policy.

Please note: — The Accidental Death or Dismemberment rider does not cover illegal activities. If the deceased was killed as the result of an attempted suicide, a felony crime or malfunction of the human body (e.g. heart attack, stroke that caused the car to veer off the road and crash, killing the driver), the rider is void.

The Accidental Death or Dismemberment rider also covers accidental dismemberments. In most cases, one-half of the face value of the life insurance policy would be paid for the accidental loss of one eye, one arm, or one leg. If you were to lose both of any pair, you would receive the full amount of the policy.

Waiver of Premium Rider — In the event that you become disabled, the Waiver of Premium rider ensures continuing life insurance coverage, even if you are unable to work and pay the premiums. A Waiver of Premium will cause annual premium to increase by as much as 10%.

Spousal or Dependent Rider — The Spousal or Dependent rider offers you the opportunity of adding your spouse or one of your dependents to your life insurance policy through an amendment. This allows to you keep all of your family members on one life insurance policy.

Disability Income Rider — A Disability Income Rider is purchased for the amount of your earnings over the last two years. In the event that you become disable, you will receive supplemental payments to your lost wages, social security and other disability insurances and plans, after the provider-determined waiting period. During the waiting period, you will have no benefits. The Disability Income rider will only be used to make up for what your other disability benefits do not cover.

Remember, although you may feel that a Rider is necessary to protect you family in all circumstances, you should purchase a regular policy at the amount you feel would best fit needs of your family.