Life Insurance Riders
Life Insurance Riders
A rider is an additional coverage that an insured can add on to his policy at the purchase of the insurance policy. It is an "extra" or "option" that is not in the basic policy you are interested in buying. The fee of the rider depends on which rider option the insured chooses upon purchasing.
The most common riders added on to the policy are:
Double Indemnity - The face amount of the policy will be double if the policy owner dies as a result of an accident. For instance, if the owner has a $100,000 policy with the double indemnity rider, the beneficiary will receive a double death benefit - $200,000, not $100,000 if the insured dies as a result of an accident.
Family Rider - Rather than purchasing a separate policy for the spouse of the insured, which can be hefty on your income, the insured can choose this option to have his spouse covered under their policy. The amount of coverage for the spouse can be equal or less than the insured. Should the spouse die, the insured will be the beneficiary.
Guaranteed Insurability - This option is the only available to the policyholder under the 40 years old. It allows the insured to buy additional insurance at stated ages such as 25, 28, 31, 35, and 40. The suppose of this rider is to allow the owner to buy extra coverage regardless his future physical condition.
Waiver of Premium - This rider frees the insured to pay any more premium should they become disable. The insurance company will pay the policy for the insured as long as the insured is totally disable
Disability Income Rider - This rider usually is only included if there is a waiver of premium available. The purpose of this rider is to provide a certain amount to income to the owner if he becomes fully disable.