Here’s a list of the most important options for life insurance. All these options usually cost extra, but as you can see – the flexibility is up to you. You need to pick and choose what fits your situation.
Again, we come to a question:
“If I don’t have this insurance and something happens – then what?”
These options are called Riders in the insurance world. Because they get attached to the contract as a ride-along passenger. They are not a part of the basic ride, but you can add them on as passengers:
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Return of Premium (ROP)
Type of life insurance rider you can add to a new or existing life insurance policy. With return of premium, you get reimbursed for some or all the life insurance payments made over the years, if your policy expires while you are still alive. – MOST IMPORTANT RIDER FOR WHOLE LIFE
Critical Care Illness Rider
If the insured is critically ill and has a $1,000,000 life insurance policy – the Insured can borrow up to $250,000 for their critical care. This money does not need to be repaid, and instead will be deducted by the insurance company from the death benefit, before it is disbursed to the beneficiary.
Terminal Illness Rider
Useful if the policyholder has a terminal illness and emergency funds are needed (to pay off mortgage, medical costs, etc.).
Family Income Rider
In the event of the policyholder’s death, this death benefit rider provides the beneficiaries with the amount of money that is equal to the policyholder’s monthly income.
Guaranteed Insurability / Guaranteed Issue (GI) Rider
Guarantees that the insurer will continue coverage after the current policy expires, without having to take another medical exam. This is a helpful feature for those who expect health changes in the future and want to make sure that they can maintain the needed coverage. (Note: New coverage will usually carry a higher premium)
Accidental Death Rider
If the insured dies as a result of an accident, the policy with an Accidental Rider will pay an additional sum on top of the regular Death Benefit. Usually it doubles, but that can change, depending on how the policy is written.
Waiver of Premium Rider
If the insured becomes permanently disabled or loses their income as a result of an injury or illness, prior to a specified age, the premiums are waived.
Child Term Rider
Allows you to convert your Child’s Term Life policy to Permanent coverage once the children reach maturity.
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If you have any questions about these riders, please discuss them with your trusted insurance agent.