Riders allow the original insurance policy to be modified or updated and are important elements to taylor the coverage to meet you specific needs.  Riders can be extremely valuable and should not be ignored when building a life insurance policy.

The important types of Riders include:

• Accelerated Benefit
• Accidental Death Benefit Rider
• Children’s Protection Rider
• Cost of living Rider
• Disability Income Rider
• Guaranteed Insurability Rider
• Impairment Rider
• Multiple Indemnity Rider
• Payor Benefits Rider
• Return of Premium Rider
• Transplant Rider
• Unemployment Rider
• Waiver of Premium Rider
• Overloan Protection Rider

Accelerated Benefit
The Accelerated Benefit Agreement provides for the early payment of a portion of the death benefit if the insured has a terminal condition. The accelerated benefit is paid as a loan and loan interest is charged. The entire amount of the loan will be due and payable at the death of the insured.

Accidental Death Benefit (ADB)
Accidental death benefit (ADB) rider, also known as double indemnity, may be added to an insurance policy to provide for an additional amount to be paid to the beneficiary should the insured person die as the result of an accident. This additional amount, usually referred to as the “principal sum”, is generally an amount equal to the face value of the policy (thus the term double indemnity). It could, however, be three or more times the policy’s face value.

Children’s Protection Rider (CPR)
Children’s Protection Rider (CPR) covers children from 15 days old to about 18 to 25 depending on the company writing the policy.  For around $50 for $10,000 of coverage, they will cover all of your children whether 1 or 20.  The same $50 (close estimate) covers all your kids regardless of how many you have even if you decide to have additional children.
In addition, once the children are old enough not to be covered under CPR any more, some companies will let them purchase their own individual policy without evidence of insurability. So, if one of your children became uninsurable in the future but was covered under your CPR rider at some point, they could still have their own albeit small life insurance policy.

Cost of Living Rider
Cost of Living Rider provides for annual increases in coverage due to inflation and is based on a rise in the Consumer Price Index (CPI).

Disability Income Rider
Disability Income Rider can secure a regular monthly income from the insurance company should he or she become totally and permanently disabled with a Disability Income Rider. Usually covering policyowners who are also the insured, the Disability Income Rider guarantees a specified level of income for either as long as the disability lasts or a time frame specified in the rider.

Guaranteed Insurability Rider
Guaranteed Insurability Rider allows the insured to buy more disability income coverage at ages that are specified in the Rider. The insured is not required to provide the insurance company with proof of prior insurance. This type of Rider states specifically the ages when the additional coverage can be purchased (e.g., 40, 45, and 50) and exactly how much additional coverage can be purchased at that time. This amount is usually no more than twice the monthly indemnity at the date of original purchase of coverage.

Impairment Rider
Impairment Rider excludes any existing medical illness or chronic physical ailment from coverage. This would include any pre-existing conditions that an insurance company would otherwise exclude from a health policy. The Impairment Rider allows the insured to get insurance coverage that might have otherwise been refused, and protects the insurance company from high risks.

Multiple Indemnity Rider
Multiple Indemnity Rider doubles or triples the amount of benefits paid out towards AD&D, depending on the cause of the death or dismemberment. The insured can purchase these double or triple indemnity riders, which would result in a higher pay out to beneficiaries should AD&D occur.

Payor Benefit
Payor Benefits involves the case that the insured is a minor and the premium payer is disabled or passes away. Like the Waiver of Premium rider, the insurance company will continue to pay the premiums for a certain period of time, in this case until the minor reaches age 18.

Return of Premium Rider
Return of Premium Rider provides for a return of all premiums paid if by a certain age (such as 65), the insured hasn’t had a claim, or hasn’t received benefits over a particular threshold amount.

Transplant Riders
Transplant Riders supplement medical expense plans with higher limits and special benefits for an insured needing an organ transplant.  This can include higher limits, post transplant evaluations, experimental treatments and more.

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

Waiver of Premium Rider
Waiver of Premium Rider provides the waiver of any further premium payments if the insured should become totally disabled. The disability must be 90 days or longer for the waiver of premium rider to be effective. When the disability ends, the insured starts paying the premiums again. However, if the disability is deemed permanent, the policy coverage remains in effect with full Waiver of Premium until the insured turns 65.

Overloan Protection Rider
The Overloan Protection Agreement (OPA) provides that the policy will not terminate because of a policy loan even if the accumulation value is insufficient to cover policy charges. If all the conditions described in the agreement are satisfied, this agreement may be exercised and we will guarantee that the policy will not terminate.