Common Life Insurance Riders
Each client’s needs and wants are different. A basic life insurance policy may not be enough for their circumstance. That is why you should always inform them about available riders, which are benefits that you can add to an existing policy for an extra cost. These are some of the most common life insurance riders your client may want to consider.
Accelerated death benefit- The accelerated death benefit rider is usually included in most policies at little to no cost. In the event of a terminal illness, the rider allows the client to receive a benefit payout. It could be used to help with hospital bills, but it is up to the policyholder’s discretion. The payout may be taken away from what their beneficiaries are set to receive when they pass. The definition of terminally ill may vary, so make sure your clients check in with their insurance provider.
Guaranteed insurability– This rider allows your client to buy additional coverage at a later time without needing a medical exam. There may be some restrictions as to when these purchases can occur, such as events like marriage, having a baby, etc. This is a great option because if they were to get sick later in life, they would not need to prove their insurability to purchase extra coverage.
Return of premium– Specifically for term life insurance policies, a return of premium rider allows your client to receive all, or a portion, of all the premiums they have paid if they outlive the term. However, if they die, their beneficiaries will receive the paid premium amount.
Waiver of premium– A waiver of premium rider permits the client to stop paying premium payments if they were to become disabled and no longer able to work. It keeps the policy active as if the payments were being made and does so until they are back to working full-time. The definition of disability varies from carrier to carrier, so it is advised that clients speak to the insurance provider. Overall, this is a good option that will not let the policy lapse and keeps the family covered.
Family income benefit– This particular rider is great for those who are the sole providers for their family. The family income benefit rider provides a steady stream of income to the family when the insured dies. When purchasing the rider, the policyholder must decide how long they want the payments to continue.
Accidental death benefit– This rider pays out an additional benefit, which is usually double the original, to the family of your client if they die as a result of an accident. If they work dangerous jobs and need extra coverage, this would be an ideal option to protect their family when they are gone.
We hope this information on common life insurance riders is helpful to you.
Empower Brokerage is dedicated to helping you educate your clients on the insurance they need and staying on top of their health. Whether it’s through webinar training, one-on-one calls, seminars, or marketing plans. We want you to be successful. Give us a call if you have any questions 888-539-1633.
Kayla is a graduate of Texas A&M University and joined the marketing team at Empower Brokerage in early 2021. She creates content for the company websites and assists with various marketing campaigns. LinkedIn Profile