When purchasing a life insurance policy, you can opt to add on different benefits to a standard policy and expand your coverage. These riders help you customize your protection for supporting your family’s unique needs. Different life insurance riders exist on the market, and not every person needs every benefit. To help guide your options, here are some common riders to consider:
1. Accelerated Death Benefit (ADB) Rider
You can add an ADB rider to your life insurance plan in order to financially protect you from a diagnosis of a terminal illness. With this rider in place, the life insurance policy will typically pay out benefits when the person has less than one year left to live. The individual can use the money to help cover costs associated with treatment and other necessary expenses.1
2. Long-Term Care (LTC) Rider
Some people choose to add the long-term care rider to their insurance policy when they do not hold separate LTC insurance. These riders can help pay for costs associated with long-term care in retirement that could otherwise be out of reach, such as nursing home or caregiver expenses. Riders can pay for both temporary and permanent benefits, which you as the policyholder can customize to your needs.2
3. Return-of-Premium Rider
This rider is most suited to people who highly believe they will outlive the terms of their life insurance. You can purchase this benefit when you have term life insurance, and it allows you to receive back all, or most, of your paid premiums. To receive the benefit, the person must not die during the term of their insurance and have never received a death benefit.3
4. Waiver of Premium Rider
Should you become completely disabled and unable to work while holding life insurance, this rider will help you pay planned premiums. And you can often purchase it between the ages of 18 and 60 years old. With this benefit in place, the insurance company will pay your premiums until you turn 65 years old or through the planned premium period. A variety of factors will affect additional rider costs, such as risky hobbies you may engage in.4
Ultimately, your unique financial goals will drive the best life insurance strategies for you. If you would like to discuss riders you currently hold or other available options, we’re happy to help.
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