Life Insurance Policy Riders

There are a number of policy riders available to those who are buying term life insurance .  Most term policy riders, withe the exception of Return of Premium, are quite affordable and well worth considering.  Some of the riders are simply part of the policy and cost little or nothing.  Below is a list of available riders along with a descriptions

Accelerated Death Benefit (Also called the Living Benefits Rider)

The particulars of this policy will vary from one life insurance company to the next, but the way it generally works is that if it is determined by a qualified physician that you have 12 months or less to live, you may be given access to a certain portion of the face amount of your term life insurance policy.  This amount is usually 50%,  or an amount up to $250,000.

Accidental Death Benefit Rider

If the insured's death is determined to be caused as the result of an accident, the term life insurance policy will pay out a much larger amount.  In many cases this amount is double what it otherwise would have been.

Minor Dependents Term Life Insurance Rider

This term life insurance rider typically covers all children of a policy owner usually for a sum that is less than $50,000 and is meant to usually to cover final expense.  This rider will often guaranteed the policy holder the option to convert term insurance purchased for minors in to a permanent policy for many times the face amount of the term rider without evidence of insurability.

Policy Purchase Options Rider

This rider guarantees the policy holder the right to purchase additional amounts of insurance at specified intervals without having to provide proof of insurability.  The amount available to be purchased at each interval varies between $10,000 and $100,000, typically.

Waiver of Premium

If it is determined that the insured is seriously ill or disabled, then the life insurance company will "waive" the requirement to make premium payments during this time.

Unemployment Rider

Some companies will also waive the requirement to make premium payments for a duration of usually not more than 1 year in the even of the insured's unemployment.

If you are considering a purchase of term life insurance, some of these policy riders can be quite affordable and therefore make a good deal of sense.  As always, it pays to shop around!