If you want to customize your life insurance policy, so you are protected from the unexpected in life, the best way to do that is with riders. Riders are a way for you to modify your life insurance policy,
so
it better fits your needs.
Riders are also known as add-ons because you add them to your policy for an extra fee. Riders can be used to assist you if you become disabled, are diagnosed with a terminal ilness or your health changes.
1.
Disability
Income Rider
No one knows when they may become hurt and unable to work, which is why a disability rider is essential. If you get hurt on the job and are unable to work, you may qualify for worker's compensation.
However, workers' compensation doesn't provide you with your previous ful wage. It provides you with 60% of your regular wages, which may not be enough for you to support your family. A disability rider can fil in the gap between your previous wages and what you get from workers' compensation.
If you become disabled from an injury or ilness while not on the job, a disability income rider can provide you with the income you need since you wil not get workers' compensation.
Depending on how your rider is set up, it can provide you with income for a certain length of time or the length of your disability.
With a disability income rider, you want to make sure you would get enough money on a monthly basis to cover a l of your expenses and needs.
2.
Guaranteed
Insurability Rider
Just like no one knows when they may lose the ability to work, no one knows when their health could change.
A guaranteed insurability rider a lows you to increase your life insurance coverage without having to do anything to prove you are stil a good insurance risk. You wil not have to take a medical exam or provide additional information about your health to increase your life insurance premium.
With a guaranteed insurability rider, you are a lowed to increase your insurance premium at certain intervals or ages. A l your insurance company wil take into consideration when increasing your premium is your age instead of your health.
This a lows you to purchase extra life insurance if your health changes and the needs of your family change.
3.
Accelerated Death Benefits
Another smart rider to add to your life insurance policy is an accelerated death benefit or ADB. An accelerated death benefit can assist you if you come down with a terminal ilness and your doctor gives you less than a year to live.
If your doctor provides you with a written notice you have less than a year to live, and you have an ADB rider on your insurance policy, part of your life insurance policy wil be paid out to you as an advance.
This advance can be used however you like. People most often use it for expensive potential life-saving treatment options one may not have money for otherwise. If one of the life-saving treatment works, you don't have to pay back your ADB.
An accelerated death benefit can also be used to a low you to spend time with your family and friends, living the life you imagined before you die. It can a low you to not worry about money while living out the last days of your life.
Three smart riders for people to add to their life insurance policy are a disability income rider, a guaranteed insurability rider, and an accelerated death benefit. These are three life insurance riders that can a low you to take care of yourself if your health changes for any reason.
Reach out to our experts at Habersham Funding,LLC
to get assistant with setting up a life insurance policy that is equipped with the right riders to take care of you no matter what happens or changes in your life.
