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 illness 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 full 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 fill in the gap between your previous wages and what you get from workers' compensation.
If you become disabled from an injury or illness while not on the job, a disability income rider can provide you with the income you need since you will 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 all 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 allows you to increase your life insurance coverage without having to do anything to prove you are still a good insurance risk. You will 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 allowed to increase your insurance premium at certain intervals or ages. All your insurance company will take into consideration when increasing your premium is your age instead of your health.
This allows you to purchase extra life insurance if your health changes and the needs of your family change.
