FAQ: When to Consider Life Insurance Riders?

Are you thinking about getting life insurance? There are different options you can choose from if you are. Here are some insurance types that are available to you:

  • Term life insurance
  • Whole life insurance
  • Permanent life insurance
  • Universal life insurance
  • Variable life insurance

Riders for Supplementation

However, with all of these choices, you have still more options available to you in the form of riders, and just about all of these life insurance types offer riders to their policies. Riders are basically insurance policies that enhance, supplement, and strengthen an original life insurance policy. They are optional, cost more to add on to your policy, and are extremely effective when you need them.

Picking a Rider

Life insurance riders need to be evaluated on a rider-by-rider basis so that you don’t spend any more than you already are for coverage that you really don’t need. Some of the most common (and therefore most popular) life insurance riders are waiver of premium, accelerated death benefit, family income benefit, return of premium, and long-term care. These riders will all cover specific scenarios that you either want to see happen or, conversely, that you want to avoid. For example, if you have a family and want to make sure they have a consistent amount of income each month, you can choose to pay extra for the family income benefit rider. Or, if you’re worried that you may be injured and require long-term care – which is unbelievably expensive – you can opt for the long-term care benefit rider. Again, these riders all cost extra on top of your life insurance policy, and you probably won’t need every single one of them.

To learn more about life insurance riders and life insurance in general, be sure to consult with a life insurance specialist.