Life Insurance Riders and Policy Changes and How It Works
July 11, 2023
When you think seriously about purchasing life insurance, you may wonder if there are ways to buy additional coverages that can help you financially in unique situations. These coverages may be beneficial if you are in a certain line of work or have a specific family circumstance needing this kind of coverage. By learning more about riders and how they work, you can make an informed decision.
How Life Insurance Policies Change
If you decide to get riders on top of your initial coverage, you should note that some riders add an additional cost to your overall payments. Other riders may be included with your policy premium. Your insurance agent can explain each rider and let you know if there is an associated cost.
However, if you’re concerned about a specific scenario and wish you had more coverage, adding a specific rider may help you tremendously. If you are making a life insurance policy change, consider adding riders to cover more scenarios. For example, you may need to adjust the insurance you buy for major personal changes, like a parent staying home with children.
Scenarios to Consider
When you are looking for additional life insurance coverage, think about whether you want an accidental death rider. Suppose you are the only breadwinner, and you die in an accident. With an accidental death rider, your remaining family would be able to obtain twice the amount of money they would have from the original policy.
You may also find a Waiver of Premium rider helpful in the event of a serious illness or accident if you become disabled. Premiums are waived for as long as you are disabled. It is essential for people who are worried that they may face health problems that prevent them from working and supporting their families. The Living Benefits rider allows you to access a portion of the death benefit if diagnosed with a qualifying serious illness.
Ensuring Proper Coverage
Because you cannot always customize what you buy when you get life insurance, you may want to consider riders to get the right coverage in some unique scenarios. Not every insurer provides the same riders at the same rates, so knowing what your insurer covers is critical.
You may even want to buy a guaranteed insurance rider, which lets you buy more coverage in a specific period without getting a medical exam. Reviewing with your agent and reading the details about these riders is essential when you purchase one or more, along with understanding what an insurer would consider an accident.
Staying Aware of Changes and Life Insurance Policies Helps You
Beyond buying life insurance, you may greatly benefit from getting riders along with your policy. Knowing why these riders exist and how to get them when you purchase or change your life insurance policy is vital to crafting coverage you feel good about.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of "The World's Best Life Insurance Companies."
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.