Insurance helps to mitigate the impact on your family, should you become unable to provide for them in your normal capacity. Riders can tailor your policy to better serve this purpose.
In the event of the loss of life or disabling injury to someone who is a primary provider for a family, or a business, severe negative impact can occur for family members, employees, and stakeholders.
Insurance policies are generally designed to reduce the impact of these conditions. Policy riders can tweak a policy's particular provisions for specific kinds of conditions.
Just what is Insurance Rider?
An insurance rider is actually a kind of specialized coverage that is purchased as an addition to a standard insurance policy. The rider is not actually a policy by itself and deosn't stand independently on its own. Riders are add on provision that helps protect a policyholder from some very specific risks.
A rider does come with an additional cost but it is usually quite affordable. Often the base policy qualifies for some discounts on riders for certain things.
Riders are designed to be a limited alternative to maintaining a separate policy. Purchasing riders on a policy is a way to customize it the way you need at a lower cost.
Types of Life Insurance Riders
Various insurance companies offer different riders based on the plan in consideration. These are some of the more common riders offered by most life insurance companies:
1. Critical Illness Riders
If someone is diagnosed with a critical illness, this can be a burden on finances. Purchasing a Critical Illness Benefits Rider together with a life insurance policy can help to relieve the pressure on personal finances. Specific critical illnesses are often specified in the rider. .
2. Accidental Death and Dismemberment Rider
Most insurance policies, as a rule, provide coverage against death, however, purchasing an Accidental Death and Dismemberment Benefit Rider, will guarantee that the insured will receive benefits if something happens causinng death or loss of limbs. Since a regular life insurance policy doesn't typically cover the risk of being permanently disabled, purchasing such a rider can be very smart. The benefits from the rider are typically less than the full policy benefits, but they can be a significant income supplement.
3. Waiver of Premium Rider
In the event an accident results in a policy owner being disabled, it can result in a situation that causes it to be difficult or impossible to pay premiums on the base insurance policy. With a Waiver of Premium Rider, the policyholder’s future premium payments are waived, and he or she will still be eligible to continue receiving the policy benefits as per schedule.
In any case, before purchasing riders on policies, an in-depth discussion and analysis of coverage should be done..
Everyone at the Liveoak Agency can help set this kind of coverage up. Call us for a policy review of your insurance today!