October 26, 2009

Life insurance provides the peace of mind that no matter what happens to you, you know your loved ones are protected. Sometimes a standard life insurance policy is not enough though, and additional life insurance riders are necessary to cover your family appropriately.

A life insurance rider can make all the difference in the world when they are used correctly. Riders are additional coverages or an amendment to your life insurance policy that can provide specific extra provisions for your personal financial needs.

According to a recent article on InsuraneAgents.com, “The amount of and the kinds of life insurance riders one needs varies from person to person. Your lifestyle, your beneficiaries’ needs will all yield different coverage needs and therefore, different life insurance riders. But some life insurance riders are fairly universal and generally a good idea for every policyholder to add to their life insurance policy.”

There are many different riders that are available to you, but some of the most common ones are: accidental death benefit rider, a waiver of premium rider, a family income benefit rider, and a renewal provision rider. 

An example of one of the riders is the family income benefit rider that provides a consistent income stream for your family after you pass away. According the article, “[The family income benefit] rider provides a continuous monthly payment to your beneficiaries in the event of your death. Rather than receiving one lump sum, your beneficiaries can receive the death benefit in monthly payments, which means a reliable source of income. When adding this life insurance rider, the insured (you) chooses the length of the term you would like to provide this income security.”

Another example would be when purchasing a 30 year term life insurance.  A renewal provision rider is especially because the term life policy may expire before the policyholder passes on, but at a time when the policyholder’s condition is uninsurable.

All life insurance riders don’t fit all people. Many people will have very little use for certain ones, while other policyholders may consider certain riders imperative to their family’s financial security. The only person that can help you make the right decision is your life insurance agent.

For more information on insurance riders, and to request life insurance rates from up to five local agents, visit InsuranceAgents.com.