Home Life Insurance What Are Life Insurance Riders?

What Are Life Insurance Riders?

Life insurance riders add more to your standard life insurance policies. They’re optional but can customize your coverage to suit your needs.

Life Insurance Coverage Explained

When you purchase life insurance, you agree with an insurance provider to pay monthly premiums in exchange for a sum of money. This money is called the death benefit, and it can range anywhere from $2,000 to more than $1 million. You can use it to cover your end-of-life expenses like funeral planning and mortgage payments.

That is the primary coverage you receive with life insurance. Some policies also offer living benefits that build over time for you to use however you like. However, the main coverage is the death benefit, and it is extremely beneficial coverage.

When Something Isn’t Covered, Get a Rider

So, when your death benefit can cover almost anything, why would you need any additional coverage? Life insurance riders change your regular coverage to cover specific situations, so you don’t have to worry.

There are certain cases where your life insurance won’t meet your needs. Almost every time, you’ll be taken care of — but no two people are the same. That means that not every life insurance policy can be one-size-fits-all.

Life insurance riders address these needs. Riders will add a bit to your premium, but in exchange, you can customize your coverage to fit you.

Common Life Insurance Riders

Every life insurance provider offers a number of riders to choose from. When purchasing a life insurance policy, make sure to talk to your agent about riders that could fit your needs and budget.

Here are some common life insurance riders:

  1. Guaranteed insurability rider: Some policies require you to receive routine health checkups to stay eligible for coverage. Even more common is life changes — if you want to purchase additional coverage after a major transition like the birth of a child or income adjustment, your options may change, or you can be rejected. This rider ensures you’re always eligible to purchase additional coverage, regardless of these changes.
  2. Accidental death rider: If you die due to an accident, this rider significantly increases your death benefit. That way, your loved ones are better able to take care of your end-of-life expenses if you pass unexpectedly.
  3. Waiver of premium rider: If you ever become permanently disabled or lose income due to an incident or illness, this rider allows you to stop paying your premiums and still receive your coverage.
  4. Long-term care (LTC) rider: Nursing home and home care are expensive. If you ever have to receive either, this rider will take care of your monthly payments.
  5. Child term rider: This rider provides coverage specific to your child. Before a certain age, they are covered if they pass away. Once they pass that age, you can make it a permanent policy and receive additional coverage.

Life is Better with Kannonball

We’ll walk you through your rider options and find coverage that meets your needs best. Call Kannonball Insurance Solutions at (254) 918-5444 to learn more about your life insurance options.