When you go to purchase life insurance you will have a lot of options thrown your way to choose from.
One of the things you will need to consider will be the different supplemental benefits that will be an option for you. In many cases, the addition of a rider is shown in an added charge by the company and may necessitate that the insured prove evidence of insurability.
So just what are some of the more important riders to take a look at?
Among them are:
Waiver of Premium - This option provides that the individual's policy will remain in force by the company, minus additional payment of premiums, if the insured becomes totally disabled prior to the age of 60 or 65, following an initial waiting period. Total disability is looked at by the terms of the rider, and premiums are waived provided the individual's disability continues and policy benefits continue just as if the person had paid the premiums. Most experts will tell you this coverage, which is relatively inexpensive, is worth it.
Automatic Premium Loan Provision - This provision notes that at the conclusion of the grace period, provided the premium due has not been paid, a policy loan automatically be made from the policy's cash value to cover the premium. This action will prevent an unintended lapse in the policy. Many experts will recommend this action due to the numerous circumstances for when a premium payment might have inadvertently not been paid. The provision in this matter needs to be elected by the policy owner and can be cancelled during any time by the same individual.
Disability Income - With disability income, the individual is provided a monthly income while they are fully disabled following an initial waiting period. Keep in mind that the monthly disability income benefit will be limited to a portion of the death benefit.
Accidental Death Benefit - The provision here offers an added amount of insurance should the death of the insured take place due to an accident. A number of accidental death benefits offer two to three times the face amount of the policy for specified types of accidents. The accidental death must take place before a specified age, like 65. One another note....death as a result of sickness is prohibited.
Cost of Living Rider - With this rider, the individual is allowed to acquire additional insurance on a yearly basis to help offset added insurance needs that are a result of inflation. The amount that can be acquired is factored around increases in the cost of living index. The additional coverage is typically available at inexpensive rates and evidence for insurability is not necessary for such increases.
Spouse Rider - The rider involved here offers level term coverage on the life of the insurer's spouse. This kind of rider also provides a conversion provision allowing the spouse to transfer to permanent coverage without evidence of insurability before the termination of the rider or upon the passing of the insured under the basic policy.
Children's Rider - With this form of rider, you are typically provided level term coverage for the life of your children. The riders are generally offered at one premium rate and could cover newborns and adopted children who can be added to the coverage minus increasing the premium you pay. The rider also provides a conversion provision, thereby allowing each child to convert to a permanent plan of coverage without evidence of insurability before the termination of the rider or upon the passing of the insured through the basic policy.
Term Riders - These kinds of riders offer temporary coverage which can be attached to a present permanent policy or interest sensitive policy to offer an amount of added insurance protection for a fixed period of time. These kinds of riders are a good idea in the event you need added insurance or a lesser amount of coverage for a limited period of time.
As always it is best when searching for life insurance to discuss with an agent what scenarios would be best for you when it comes to riders and supplements.
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