Riders For Life Insurance Explained

Riders are additional conditions and benefits youThe disability income rider guarantees a specified
can add to your life insurance policy for a fee tolevel of income for as long as the disability lasts
tailor the policy to meet your specific needs. Youor for a specified time should the insured become
need to evaluate each rider based on the costtotally and permanently disabled. These riders
and benefits of the rider in your specific situation.usually also waive the premiums due on the life
Some common riders available are listed below.insurance policy for a period of time. The income
Accidental Death and Dismemberment Rider forpayments are generally limited to a percentage of
Life Insurance Explainedthe face value of the policy; often the payments
An accidental death and dismemberment rider is aare limited to 1% of the face value so the
low cost rider which is available with most termdisability rider is not as beneficial to the insured as
and whole life insurance policies. The ridera separate disability policy which provides a larger
increases the amount your beneficiaries receive ifmonthly income in the event of disability.
you die in an accident and pays out a set amountRenewability/Guaranteed Insurability and
to you if you lose an eye or a limb.Convertibility Riders for Term Life Insurance
Many consider these riders unnecessary. TheExplained
increased death benefit is only available if you dieIf you are purchasing a term life insurance policy
in an accident and the dismemberment portion willand considering renewing the policy in the future a
only cover loss of a limb or eye and not arenewability or guaranteed insurability rider is a
debilitating disease that prevents you from earninggood idea. These riders guarantee the policy's
a living. If you are looking for insurance to coverrenewability at the end of the term without
your family's expenses if you can no longer workadditional proof of your insurability. In order to
you are better off purchasing a comprehensivetake advantage of this provision, you are often
health insurance policy or a separate disabilityrequired to renew your policy within a set number
insurance policy. These policies provide betterof days and failure to do so will void the
coverage than a dismemberment rider and offerguarantee. Some of these riders expire at a
a better value for most individuals.certain age so read the rider carefully to make
Family Income Benefit and Disability Incomesure it covers your specific needs before
Riders for Life Insurance Explainedpurchasing the rider.
The family income benefit rider pays the deathA convertibility rider allows the insured to convert
benefit and a monthly income to the beneficiarya term life policy to a whole life term or annual
for a specified duration if the insured dies beforerenewable term policy if desired before the end
the end of the specified term. For example, aof a specified time regardless of your medical
fifteen year rider will pay the beneficiary ahistory or condition. Converting your term policy
monthly income or a lump sum equal to theto a permanent policy means never having to
monthly income specified if the insured diesworry about outliving your insurance protection as
before the fifteen year period for the remainderlong as you are able to make the required
of the fifteen year period. This rider may bepremium payments to keep the permanent policy
useful if you are providing a substantial portion ofin effect. If you are at all interested in converting
the family's income in providing a regular incomeyour term policy at a future date to a whole life
for a transitional period after your death inpolicy this rider would be useful.
addition to the death benefit.