When a policyholder passes away unexpectedly, the policy’s cash value is used to provide for the policyholder’s dependents. However, a standard life insurance policy pays out only upon the policyholder’s death and does not provide coverage for medical expenses incurred due to illness or injury. Adding riders to an insurance policy broadens its coverage and provides the insured and his loved ones with further protection.
Riders or add-ons allow you to benefit from additional protection. They let you tap into your death benefit during your lifetime. These riders also help you tailor your insurance to your specific requirements.
Here are some useful riders that you should consider adding to your life insurance policy:
Accidents can happen any time, and when they do, they usually have terrible consequences. A serious accident can cause permanent damage. It will also be a major hardship for the family’s dependents. The partner or parents may need to work to support the family while simultaneously shouldering the financial burden of medical care.
Fortunately, such unlucky occurrences can be covered by adding an accidental disability rider to the life insurance policy. With this rider, the policyholder will get the sum covered if the insured becomes disabled after the accident.
If the policyholder dies of an accident, the rider’s beneficiaries will get the sum insured plus an extra accidental death benefit. The original assured sum is still paid, plus a supplement based on the original assured sum. This supplementary amount is typically decided as a percentage of the original sum assured and can vary from one insurance provider to the next. Some providers might also place limits on this add-on.
Remember that this rider only takes effect if the death results from an accident. Workers in hazardous environments, or those who put themselves at risk regularly, can benefit from this add-on.
Critical Illness Benefit Add-On
If the policyholder is diagnosed with a terminal illness, the policy’s rider will pay a lump sum to help cover the exorbitant medical expenses. Critical illness coverage typically includes coverage for most serious diseases. After the critical illness is diagnosed and the rider payment is made, the coverage can continue or end as specified in the policy.
Waiver of Premium Add-On
Several people have lost their jobs due to the ongoing pandemic crisis. The premium becomes unaffordable when there is no reliable source of revenue. In such circumstances, the waiver of the premium add-on might be helpful. If the policyholder loses their job, becomes disabled, or is diagnosed with a serious disease and is unable to pay the premium, the insurance company will pay it for them. A standard term plan will remain in effect until its maturity date.
Income Benefit Add-On
The primary purpose of the income benefit rider is to provide financial support to the policy’s beneficiaries after the policyholder passes away. By adding this rider to the insurance, beneficiaries will receive an annual income in addition to the sum assured for a period of 10 years.
Life insurance riders allow policyholders to tailor their coverage to their own needs and cover a wider range of potential contingencies. However, before purchasing an add-on, it is important to read and understand all of its terms and conditions.
Guaranteed Insurability Add-On
A medical exam is not required if you buy this rider and use it within the specified time frame. A guaranteed insurability rider is particularly useful after a major change in your personal circumstances, such as welcoming a newborn child, marriage, or a major increase in your income. You can apply for supplemental insurance without proving your insurability even if your health worsens with time.
In some cases, this rider will also allow you to renew your primary insurance after its term without undergoing any additional medical assessment. It’s important to note that there may be a cutoff age for guaranteed insurability riders.
Looking for Reliable Life Insurance in Houston, TX?
Franklin Life and Annuity has been a trusted life insurance Houston Texas, for over 2 decades now. You can count on us for various types of life insurance coverages, from final expenses to burial life insurance. We’ll help you figure out which policy option offers the greatest protection for you and your loved ones.
Get in touch with us today to learn more about our services.