A life insurance policy can be an investment plan for your family's future, or it can be a way to ensure your funeral costs are covered after you're gone. However, there's more to life insurance than just basic benefits. There are several different types of riders you can add to your policy to provide you and your family with extra coverage. Here are some to consider as you shop for a life insurance policy.
Disability Income Rider
If you want extra protection in the event that you become disabled at any point, a disability income rider can be a smart investment. This type of policy will pay a percentage of your policy's face value every month, giving you extra income to make up for lost wages. The amount you receive will depend on the value of your policy at the time of the medical event that causes your disability, so keep this in mind when you add the rider to your policy. You may still need to consider other forms of income or investments to help cover your expenses after becoming disabled.
Accelerated Death Benefit Rider
An accelerated death benefit rider provides a way to access a portion of the death benefits from your policy while you are still living. This option is typically used for people with catastrophic injuries, terminal illness, or the need for permanent residence in a nursing home. By accessing a portion of the benefits early, you can cover potential medical costs, such as in-home care, hospice, or hospital bills. This can help to ensure you get the care you need when you need it. Choose this option if you have children and are worried about affording the potential cost of medical care while still providing for your family.
Waiver Of Premium Rider
A waive of premium rider provides a way to keep your insurance policy current if you become disabled or severely ill and unable to cover the cost of your premiums. With this rider, your monthly premiums are paid by your insurance provider until such time as you can pay them again. There may be other requirements set forth by the insurer, such as a limit for how long you can use this benefit. While you may have to pay extra for this rider, it is a sound option if you are concerned about possible issues with paying your premiums after becoming ill or disabled.
Your life insurance provider can give you a complete list of riders you may want to choose from when customizing your policy. Keep your future needs in mind and consider these different options to provide for you and your family when you can't.
Do you remember the last time you experienced an accident or an injury? Life can surprise you sometimes, which is why it is always smart to have a few life insurance policies in place. I used to think about everything that I had and everything that I could lose, and it occurred to me that I couldn't risk taking any chances. I wanted to begin this blog to share my perspective with other people, so that you don't have to worry about finding the right insurance company. Read more here to figure out what you need to do to choose a better plan.