Did you know that many Americans don’t buy life insurance because they feel like they don’t fully understand how it works? This is unfortunate, considering that life insurance can bring a number of benefits to individuals and their families.
One aspect that many people might not be familiar with is life insurance riders. If you’re worried that there are gaps in your policy and you’d like a little more coverage, then a rider could be just what you need.
So keep on reading and we’ll take you through everything that you need to know about life insurance riders.
What Is a Life Insurance Rider?
A life insurance rider is an optional add-on to a life insurance policy. It provides supplemental benefits or coverage that you otherwise wouldn’t get.
These riders can help you customize your policy so that it is better tailored to your needs and the needs of your heirs.
Some riders can increase the cost of your life insurance premium. However, others won’t affect the cost at all.
Popular Life Insurance Riders
One of the most popular life insurance riders is burial insurance. This is a rider that’s used to pay for funeral items and services after a death.
This kind of insurance doesn’t require a medical exam to get. It’s a cash policy so it builds a cash value over time.
An accidental death benefit rider is a rider that comes with extra life insurance coverage if you die due to an accident. This kind of rider usually pays twice as much as your normal life insurance coverage. You might have heard of this coverage referred to as “double indemnity.”
A long-term care rider is a set amount of coverage for a specific amount of time. You can use it so that you or your heirs can collect the long-term benefits if the premiums are not used.
A term conversion rider lets you cover your term policy into a permanent policy. For example, you can convert it into a universal or whole life insurance policy without needing to take a medical exam.
This kind of rider is especially useful for young people who don’t want to pay for a permanent policy but still desire a plan that covers them for life.
It also might be worth looking into a guaranteed insurability rider. This is a rider that guarantees that you’ll be able to renew your term policy once the term comes to its end. You can renew the policy no matter the state of your health.
Understanding Life Insurance Riders
As we can see, life insurance riders can help you strengthen your policy and make sure that you’re fully protected. This can provide you and your beneficiaries with priceless peace of mind.
Are you interested in purchasing burial insurance? If you are then contact us today and see what we can do for you!