8 Common Life Insurance Riders
Accelerated death benefit rider (ADB): This rider allows you to access a portion of your death benefit while you are still alive if you are diagnosed with a terminal illness. This can help you pay for medical expenses, long-term care, or other expenses.
- Guaranteed insurability rider (GI): This rider guarantees that you will be able to purchase additional life insurance coverage in the future, even if your health deteriorates. This can be helpful if you want to make sure that your family is financially protected in the event of your death, even if you develop a health condition in the future.
- Waiver of premium rider (WP): This rider waives your life insurance premiums if you become disabled. This can help to ensure that your coverage remains in place even if you are unable to work.
- Child term rider: This rider allows you to add a term life insurance policy for your child to your own life insurance policy. This can be a way to provide your child with life insurance coverage at a young age, when it is typically more affordable.
- Family income benefit rider (FIB): This rider provides a stream of income to your beneficiaries if you die. This can help to replace your income and provide financial support for your family.
- Long-term care rider: This rider provides coverage for long-term care expenses, such as nursing home care or assisted living. This can be a helpful way to protect your assets and ensure that you have the financial resources to pay for long-term care if you need it.
- Return of premium rider: This rider allows you to get a refund of your premiums if you cancel your life insurance policy after a certain period of time. This can be a helpful way to protect yourself if you need to cancel your policy early.
- Cost of living rider: This rider allows your death benefit to increase over time based on the Consumer Price Index (CPI). This can help to ensure that your death benefit keeps pace with inflation and remains adequate to meet the needs of your beneficiaries.
These are just a few of the many different life insurance riders that are available. The best rider for you will depend on your individual needs and circumstances. You should talk to a life insurance agent to learn more about the different riders that are available and to find the ones that are right for you.