Updated: Oct 8, 2022
In life insurance, a rider is an amendment to an insurance policy that expands or decreases its benefits or excludes certain health conditions. There are many types of riders that may
available to be added to an insurance policy and will go over some lightly in this blog.
Waiver of Premium: This waives premiums if the insured becomes totally disabled for the duration of disability or end of policy.
Payor Benefit: Insurer waives premiums if the policyowner or payor becomes disabled or dies for a specified period of time.
Term Riders: Provides additional insurance protection for a fixed period of time. i.e extra protection for length of mortgage
Accidental Death Benefit: Policy pays double or triple the face amount in the event of an accident.
Accidental Death and Dismemberment: Pays the amount of the rider due to accidental death. In the case of dismemberment, policy pays 50% of rider amount (100% if loss of 2 limbs or total eyesight).
Guaranteed Insurability: Allows the insured to purchase amounts of additional insurance every 3 years based on certain events without evidence of insurability.
Return of Premium: If the insured dies, the policy pays 100% of base amount of coverage plus the total amount of premiums paid.
Long Term Care: Provides up to 100% payout if the insured qualifies for long term care benefits. Any payouts on this rider reduce the death benefit.
These are some of the riders that may be available to be added to policies. Also, the descriptions are simplified. It is important to know what exactly the rider you are adding excludes or limits. Reach out to the Complete Benefits team for any of your insurance questions.