You are completing an application for life insurance. Congratulations! You have selected the face amount (the death benefit) and you wrote in your beneficiary. Now you are looking (or should be looking ) at the big box labeled….RIDERS.

First, what is a rider? A rider changes the policy in some manner. For example, a common rider will waive (not have to pay) your premium if you remain disabled after six months. Most riders will add new features to your policy and bump up your premium. The more common riders include:

1. Accelerated Death Benefit Rider is also called the Living Benefit Rider. If you are terminally ill (normally within 12 months of dying), you can obtain up to 60% of the face amount (death benefit) of your policy and these funds will be received income tax free. You can use these funds for any purpose…pay medical bills, take a trip or give money away. This feature is often a standard feature today in many life insurance policies sold today. Either way, make sure your policy has this feature. Good news…there is NO premium for this feature.
2. Long Term Care Rider. Proceeds from the Long Term Care Rider can be used to pay for qualified services such as care in your own home, care in a nursing home or living in an assisted living community. Funds that are used for your long term care will reduce the amount of money when you die. For example, you have a $250,000 whole life policy with a Long Term Care rider. You use $50,000 for your long term care services. At your passing, your beneficiary will receive the remaining $200,000. This rider can only be attached to a permanent life insurance policy like whole life or universal life policy; it can’t be attached to a term life insurance policy. This type of policy is called today a “Hybrid” policy- one part life insurance and the other part for long term care. This policy will be definitely a blessing, either as a death benefit to someone and/or for your long term care.
3. Waiver of Premium Rider to any life insurance policy at the time of application — either a permanent policy or to a term life policy. You don’t need to pay the premium as long as you are disabled, usually for a period of least six months. You must pay the premium for the first six months of your disability; however, in the seventh month, the insurance carrier will send you back to you the premiums that you paid during the first six months.
4. Accidental Death Rider that will double or triple the death benefit if you die as a result of an accident. A good rider for young adults who are under-insured since accidents are a major reason for deaths among young adults.
5. Guaranteed Insurability Rider will allow you to buy more life insurance every three years or if you marry, birth of a child or an adoption up to age 40. No medical questions will be asked.
6. Insured Term Rider will allow you to add a term life insurance rider for more life insurance to your policy. For example, you are applying for $150,000 whole life policy ; you can add an additional $250,000 term life insurance to your policy to increase the total death benefit to your policy. Now you will have a permanent life policy (whole life insurance) for the rest of your life and more protection with an affordable term life insurance rider on the same policy.

I am frequently asked this question. Can I add a rider after my policy has been issued. Answer is no, sadly. Riders must be selected at the time of application.

There are other riders too, besides the ones above. . Inquire about them too. Call me, Bob Quinlan at (845) 723-5055 if I can help you.