Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
Many types of life insurance offer additional protection items called riders. some of them are free and embedded into the policy, while most cost more money to add them on to the base policy. Here's just a few of the examples of the riders offered with life insurance: waver of premium, spousal, children, long term care, critical illness, terminal illness, etc.
A life insurance rider is a policy provision that sets it apart from a basic policy offered by that same company. The rider adds a benefit to the policy, usually (but not always) at an additional cost.
Some riders are as follows:
Child Rider - adds coverage for all the children in the family for the cost of one rider.
Terminal Illness Rider - allows up to 50% of the death benefit to be taken in cash if diagnosed with a terminal illness.
Waiver of Premium Rider - pays the life insurance premium if you were to become disabled.
Disability Income Rider - provides income in case of disability, as a disability insurance policy would do.
Chronic Illness Rider - would pay for extended care needs.
Critical Illness Rider - would pay a lump sum if diagnosed with certain diseases.
Accidental Death Rider - would pay extra is the cause of death was an accident.
A life insurance rider is defined as a supplemental agreement that adds something to a policy. E.g. Riders that pay an additional benefit for accidental death or the death of a child. However, the term, life insurance rider, is also used to describe a supplement to a policy that limits or waives benefits in certain situations. E.g. Aviation exclusion rider.
Licensed Life Agent, Life and Finance/ 50 States, New York
A rider on life insurance policy is an additional coverage on the original policy. It is not a named coverage as the same with all insurance policies. Riders are cost saving and advantageous. For instance, if you want a child rider on a life policy. The cost would be an additional $5.00 for $25,000 in coverage to cover all children no matter how many in the family. Contrary, to individual policies which add up to more. This is until each child is no longer dependent, and is guaranteed insurable.
That is a great question! A "rider" in insurance lingo, is a clause that is attached to the body of the original policy. It "rides" along on it. Some life insurance policies will allow for the addition of a term insurance policy as a rider to cover a spouse's or children's life insurance needs. The applicants life insurance policy will now (for an additional cost ) insure their life, plus the person/s named in the rider (for however long the rider is in force). Accidental death and dismemberment policies are popular riders also. Need more info? Feel free to drop me a line, I'm happy to help. Thanks for asking!
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Some riders are as follows:
Child Rider - adds coverage for all the children in the family for the cost of one rider.
Terminal Illness Rider - allows up to 50% of the death benefit to be taken in cash if diagnosed with a terminal illness.
Waiver of Premium Rider - pays the life insurance premium if you were to become disabled.
Disability Income Rider - provides income in case of disability, as a disability insurance policy would do.
Chronic Illness Rider - would pay for extended care needs.
Critical Illness Rider - would pay a lump sum if diagnosed with certain diseases.
Accidental Death Rider - would pay extra is the cause of death was an accident.
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