Before you make any final decisions about a life insurance policy, you need to consider the variety of add-ons, known as riders, that are available to you. The types and costs of riders vary by insurance company and policy, but the following are some of the most common options:
Accelerated death benefit
If you become terminally ill with a short life expectancy (usually less than a year), this rider lets you collect a portion of your policy's death benefit while you are still alive. The money from the benefit can be used for anything, including medical bills and living expenses. Most insurance companies already include this rider in their term life insurance policies for free or at a nominal cost.
Accidental death benefit
This rider allows you to increase the death benefit on your policy if you die as a result of an accident or injury. This option is often referred to as double indemnity because the additional payout can be as high as the original death benefit. Sometimes this rider includes additional payment for dismemberment. The policyholder would collect money if he or she lost a limb or his or her eyesight.
Child insurance benefit
Although no one wants to go through the tragedy of losing a child, final expenses can present a terrible problem, especially for those who do not have much in savings. The child insurance benefit rider provides coverage for final expenses for a child, up to age 25 in most policies.
Waiver of premium
In the event that you are permanently disabled and are no longer able to afford your premiums, this rider would allow you to keep your policy despite your inability to pay.
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