So you’ve decided to buy life insurance to protect your family or business?
Good move.
But there’s more to the purchase than just signing on the dotted line.
You need to pay close attention to the policy add-ons that insurers
offer. In the industry, these add-ons are known as riders. Like a
warranty or guarantee for other consumer purchases, riders can give
policyholders additional benefits and increase peace of mind—If
something goes wrong, there’s a plan B.
And while they may vary in price, they are, at the very least, prudent to consider.
Here are a few of the riders I make sure my clients know about before any protection plan is completed:
Waiver of premium: This means the insurance company
pays your policy’s premiums should you ever become totally disabled. If
you overlook this one and become disabled and no longer able to work,
how would you afford your premiums? It just makes sense to have this
rider.
Guaranteed insurability rider: If you are eligible
for this rider, it makes sense to consider it because it allows you to
purchase additional coverage in the future without providing evidence of
insurability. And no one knows what life holds for our health years
down the road.
Term conversion rider: This rider allows you to
convert your term life insurance into permanent life insurance without a
medical exam. This is attractive for many people, but it can be
especially so for young a person who are starting their career and
family. A person in this position may need coverage, but doesn’t have
the means to purchase permanent insurance. This option allows them to
convert their term insurance when their need for permanent insurance
makes sense and without additional underwriting.
The decision to buy life insurance is an important one. So make sure
you ask all the necessary questions and consider your plan B at the
planning table.