You’ve likely encountered terms like “rider” while shopping for insurance policies. What are life insurance riders? Can they change your policy? Although navigating life insurance options can seem overwhelming, life insurance riders are fairly easy to understand.
Our team at Medical Profiles, Inc. explains what you need to know about riders and what they mean for your policy.
What Does “Life Insurance Rider” Mean?
A life insurance rider is an optional addendum that your agent can add to your original life insurance policy. These addendums offer additional coverages for circumstances that your current policy may not cover. Riders typically come with additional costs to your monthly premiums for the extra coverage.
While life insurance riders aren’t necessities, they can offer much-needed life insurance coverage for certain circumstances that apply to you. The type of rider you need depends on your situation. Take a look at some examples of riders that many insurers offer.
Long-Term Care
Some riders assist with paying for long-term care facilities, such as assisted living communities or nursing homes. The insurance company provides extra coverage for monthly costs associated with long-term care facilities. This rider also applies to in-home care should you and your family choose to keep you at home instead.
Thus, you can protect yourself long after you are unable to live independently with a long-term care (LTC) rider. An LTC rider can be a good idea even if you have no children or spouse. You can still invest in your future by protecting your quality of life for years after you can no longer manage a home alone.
Accidental Death
Accidents can have devastating consequences. They also occur at the most inopportune times. One concern many people have is how well their policy will cover their families in the event of an accidental death.
A rider that covers your accidental death will double the death benefit your family receives in the event of your accidental death. Before adding an accidental death rider, read the addendum thoroughly to ensure you know the accidents it covers. Some life insurance riders of this variety will only pay out for specific accidents.
Chronic Illness
Another reason you might want to purchase a rider is if you suffer from a chronic illness that could shorten your lifespan. Also known as accelerated death benefit riders, chronic illness riders allow policyholders who struggle with chronic or terminal illnesses to cover themselves and their families during later illness stages.
For example, a policyholder with cancer could take a portion of their benefit out before their death. This money could help cover medical bills and other financial needs during the remainder of their life. After the policyholder’s eventual death, their family can file for the remainder of their death benefit.
Should You Get Life Insurance Riders?
Whether or not you need any life insurance riders depends on your current health status and what circumstances could affect your lifespan. For example, your family could greatly benefit from an accidental death rider if your job requires lots of travel that might increase your risk of accidental death.
However, riders aren’t necessary for everyone. If you are under 40 years old, in good health, and don’t have any hazards associated with your lifestyle or occupation, you can consider riders completely optional.
Let Us Come to You with a Medical Profiles Inc. Paramedical Exam
Simplify your search for life insurance policies with applicable life insurance riders with Medical Profiles, Inc. We serve Houston, TX, with mobile and in-office paramedical exams, making the experience more convenient for you. Schedule an appointment at (832) 251-3926.
