Insurance Riders: Overview

Posted in Auto Insurance Riders , Life Insurance Riders

September 29th, 2009

No two people are exactly alike, and therefore they will require different needs from their insurance coverage. Unless you are 100% average, chances are that your insurance policies including auto, home and health will all include some type of insurance rider to help customize a policy to meet your specific needs. When it comes to insurance coverage, a “rider” is defined as an additional set of conditions that are supplemental to the the basic package offered by the insurance company.

Riders come in many shapes and sizes, and they can vary greatly based on the personal needs of a policyholder. For example, a young couple just starting out in the world may not yet own their home or a lot of expensive possessions. They may opt for an affordable rental insurance policy and generally that may cover their basic needs. However, once you add into the equation the value of an expensive engagement ring, that policy may not be sufficient and an additional jewelry rider covering it may be required to provide financial security in case the gem is stolen.

Life Insurance Riders

Throughout the entire insurance industry, riders are commonplace. There are many life insurance riders for you to choose from:

• Common life insurance riders
• Guaranteed insurability
• Accidental death
• Children’s protection
• Disability waiver off premium

Auto Insurance Riders

Auto insurance also has its fair share of riders that consumers may opt into. Some options include:

All this coverage may cost you extra but will provide you with the piece of mind needed.

Health Insurance Riders

Not to be excluded from all this is health insurance. Although it is typical for health insurance companies to include riders to protect themselves from the cost of “preexisting conditions,” consumers can also put some in place. Health care riders are fairly common, especially when it comes to getting:

• Maternity care
• Prenatal care
• Dental and vision care

Regardless of the type of insurance adding riders will ultimately cost the insured more money out of pocket. However, the inclusion of specific coverage may be worth the additional cost paid and should be considered by all regardless of the type of insurance being purchased.