6 Best Life Insurance Riders
Understanding life insurance riders is crucial for making informed decisions about future financial security. This article distills expert analysis on the most valuable riders to consider for your policy. By exploring various rider options, one can unlock potential benefits and safeguards tailored to unique needs.
- Investigate Charitable Benefit Rider
- Value of Accelerated Benefit Riders
- Living Benefits Rider Provides Financial Relief
- Accelerated Death Benefit Offers Lifeline
- Waiver of Premium Ensures Continuous Coverage
- Accelerated Death Benefit for Financial Flexibility
Investigate Charitable Benefit Rider
My husband and I plan to investigate the Charitable Benefit rider this year. We feel it is particularly valuable for several reasons.
We have always been charity-oriented. But, because we’ve never been what you’d call wealthy, we’ve only been able to give time to volunteer for several charities in the four states in which we’ve lived.
And now that my husband has started working for a nonprofit organization, we’re even more keenly aware of charitable needs.
Since we don’t have children, we want a portion of our death benefits to go to a good cause, especially in the event that both of us would die at the same time or close to the same time.
Given that we’ve had whole life insurance policies since we became engaged in our early 20s, we see this as our way of giving back in the afterlife what we weren’t able to afford to do in life.
Michelle Robbins
Licensed Insurance Agent, USInsuranceAgents.com
Value of Accelerated Benefit Riders
I have been in the insurance industry for almost 2 decades, and there are 2 life insurance riders that I believe to be very valuable for my clients:
Accelerated Benefit Riders (aka Living Benefits)
There are several different types of Accelerated Benefit Riders available in life insurance. Not every company offers all of them, and there are differences in terms and conditions among the companies that do. Accelerated Benefit Riders allow the policy owner to accelerate or use the life insurance’s death benefit while still alive if diagnosed with a qualifying medical condition. In other words, you do not have to die for the life insurance policy to pay out.
Some companies offer only terminal illness riders if the insured is diagnosed with a terminal illness and is expected to pass away within 12-24 months.
Some may offer only chronic illness rider if the insured is not able to perform 2 out of the 6 activities of daily living (bathing, dressing, toileting, transferring (getting in and out of bed or chair), eating, and continence)
Another variation is the option to accelerate the death benefit if the insured is diagnosed with a critical illness, such as invasive cancer, stroke, heart attack, etc.
I find that having life insurance with accelerated benefit riders provides options in the event of illness.
Child term rider
This is a rider that many people are not aware is available. It is very affordable, and it can provide life insurance for all eligible household children up to $25,000. I believe it can be extremely valuable in 2 scenarios:
Some companies allow the child to convert the rider into an individual policy with 3x the coverage when of age with no health questions asked. This essentially means that your child can get permanent life insurance with no underwriting. This is invaluable if your child is diagnosed with an illness that otherwise prevents him or her from securing an individual life insurance policy.
A handful of life insurance companies will not underwrite coverage on the rider. This means that as long as mom or dad is eligible for coverage, they can add a child rider to their policy. This will give them peace of mind that their child has some life insurance. I’ve worked with parents whose children are diagnosed with an illness and do not qualify for any insurance. Having a child rider can be a difference between some insurance vs. no insurance at all for the kids.
Zhaneta Gechev
Agency Owner, One Stop Life Insurance
Living Benefits Rider Provides Financial Relief
A Life Insurance Rider That Stands Out: The Living Benefits Rider
One life insurance rider I’ve found particularly valuable is the Living Benefits Rider. Unlike traditional life insurance that only pays out after death, this rider allows policyholders to access a portion of their death benefit while still alive if diagnosed with a critical, chronic, or terminal illness.
Why It’s So Valuable:
Life is unpredictable. Medical emergencies can drain savings fast, and having access to funds when you need them most can make all the difference. Instead of worrying about medical bills or lost income, this rider provides financial relief during life’s toughest moments.
Real-World Impact:
I’ve seen families use this benefit to cover medical treatments, in-home care, and even daily living expenses when a major illness struck. It transforms life insurance from just a safety net for loved ones into a lifeline for the policyholder as well.
It’s one of those additions that people don’t always think about—but when they need it, they’re incredibly grateful it’s there.
sebastien antoine
Marketing & Operations, The Policy Shop
Accelerated Death Benefit Offers Lifeline
As an agency owner and financial expert, I’ve found the accelerated death benefit rider to be an invaluable addition to life insurance policies. This rider allows policyholders to access a portion of their death benefit while still living if diagnosed with a terminal illness. It provides a financial lifeline during an incredibly challenging time, enabling individuals to cover medical expenses, make necessary home modifications, or simply enjoy their remaining time without worrying about financial burdens.
Personally, this rider provided immense relief when my father was battling cancer, allowing us to focus on creating cherished memories rather than stressing over mounting bills. Its value extends beyond mere dollars, offering peace of mind when it’s needed most.
Divyank Jain
Fractional CMO, Mitt Arv
Waiver of Premium Ensures Continuous Coverage
One life insurance rider I find invaluable is the Waiver of Premium rider. This rider is particularly beneficial because it ensures your life insurance policy remains active without you needing to pay premiums if you become disabled and can’t work. From my experience with Liberty Insurance’s commercial property coverage, unexpected events can have a drastic impact on financial stability, and maintaining insurance coverage is pivotal.
I recall a client whose shipping business faced challenges after an accident that left him temporarily disabled. Thanks to the Waiver of Premium rider, he didn’t have the added stress of managing insurance payments, allowing him to focus on recovery. This rider supported him in ensuring his family’s future was safeguarded without additional financial worry.
Being deeply involved in insurance, including serving on councils like Selective Insurance’s Future Leaders Program, I’ve seen the importance of integrating such riders as part of comprehensive risk management strategies. The rider aligns with the broader financial security goals clients strive for, ensuring they have continuous protection even when life presents unforeseen challenges.
Andrew Harris
President, Liberty Insurance
Accelerated Death Benefit for Financial Flexibility
One rider I find especially valuable is the Accelerated Death Benefit. This rider allows policyholders to access a portion of their death benefit early if diagnosed with a terminal illness. It’s a game-changer for families facing unexpected medical expenses, offering them financial flexibility and peace of mind during a difficult time.
A case that stands out is a client diagnosed with a terminal illness, who needed funds for out-of-pocket medical treatments. The Accelerated Death Benefit provided the financial support necessary to access high-quality care without depleting their savings. This not only improved their quality of life but also alleviated financial stress for their loved ones.
In my agency, I emphasize riders like these as part of personalized service, ensuring clients have custom solutions that protect against life’s uncertainties. This approach aligns with my commitment to education and transparency, helping clients make informed decisions about their coverage needs.
Karson Kwan
Owner, Kwan Insurance Services