So, you started your new job and just got done with your benefits package. Fast forward a few years and things have changed. Now, you have a family, kids, and are moving up in the company. Since your situation is different you decide to take a second look at things like your life insurance. Now you’re paying more attention to benefits like this. You decide that there are some things that you want to add. This is where riders on life insurance come in handy.
What is a rider?
A rider on life insurance is best defined as an addition to your policy or some sort of limitation. This is how you can customize life insurance to your own needs. Life insurance isn’t a one size fits all. One person may need a special type of coverage due to a unique hazard at work, another might want to restrict coverage should some sort of event occur. A rider does come with an additional cost on top of your premiums. This is what makes riders unappealing to some people. The following will list several different rider examples and the cost associated with it.
Accidental Death Rider
This rider pays out an additional amount when the holder dies of an accident. This would be good for someone that faces unique hazards on the job where this could happen. It’s not a pleasant thing to think about, but it’s something that could come in handy. Sometimes the amount that your insurance policy pays out isn’t enough to cover a funeral and other expenses. This rider can be a solution to that issue.
Disability income rider
This rider grants you set amount per month in the event that you become disabled. This is typically a percentage of the face amount per month. A disability can be devastating on a family and the cost can pile up. A rider like this is best for people in high-risk professions. Even if you’re not in a high-risk profession, this rider can save your family should the absolute worst happen.
Children’s term rider
This rider allows you to cover your children on your life insurance without having a separate policy on them. This can be a cost-effective way to have your children covered. Depending on your insurance company there may be certain specifications. These can include allowing the rider to be a permanent policy once the child reaches maturity. Everyone with children should consider this type of rider.
The cost
Now that you see some of the examples of life insurance riders you want to know how much it cost. There is a cost and it’s on top of your premiums. That extra cost can vary from company to company and rider to rider. Life insurance companies will often offer certain deals or packages to attract customers. Some of this can include deals on getting life insurance with a set of common riders. In other cases, some riders can cost more than others. The best way to get find an accurate price on life insurance with the riders you want is to sit down with an insurance agent. Your unique needs and situation are going to determine how much extra your riders will cost you.
Are riders for you?
So now you know about the types of riders and have a general idea of how they are priced. So are they for you? Should you pay the extra cost for the extra protection? Are there other options besides a rider? Well, that all comes down to you. As you’ve seen, life insurance can get unique depending on who it is applied to. A police officer will have different life insurance needs than an accountant. They also will have some similarities. Again, the best person to help you make that decision is your local life insurance agent.