All about Riders

I often get asked when going over options with my clients what a rider is on an insurance policy. Think of a rider a lot like a tow-able trailer, it has wheels and it can move but not on its own. An insurance policy is towing the trailer and the trailer is riding along. Basically an individual cannot purchase a rider on its own but they can purchase and often drop riders while keeping the insurance policy.

Here is are a few examples of riders;

Children's Living Term Rider: This rider is basically term insurance for your children attached to your policy this often comes with a conversion privilege where the child once 18 can purchase insurance without going through underwriting.

Spousal Rider: A policy added on to an insurance policy that covers the spouse of the insured

Living Benefits Rider also know as Accelerated Death Benefit: This rider works to allow you to access your death benefit early if you are diagnosed with a critical illness or are in a hospice. Some insurance companies offer this rider for free.

Waiver of Premiums Rider: This is often sold with insurance policies and only is applicable to age 65 this rider waives the premium on their insurance policy if the become disabled.

Hopefully this clears some things up thanks again for stopping in as always Medini Financial s here to answer your pressing insurance questions.