Final expense insurance policy benefits don’t end when you join a policy. You can attach additional benefits known as riders. Riders come in different forms and present their own advantages and incentives for joining. Riders are worth looking into if these supplemental options apply to you.
The Types of Riders
- Accelerated death benefit
- Child rider
- Long-term care
- Term conversion
- Waiver of premium
Accelerated Death Benefit
The accelerated death benefit is for those who are terminally ill. If you are critically ill and, depending on your specific policy, determined to live no longer than six months to two years. This rider can allow you to cover your medical expenses. The Accelerated Death Benefit (in most cases) is not taxed as income. The downside is that it’s going to reduce the death benefit for your beneficiaries. Getting this also requires proof that you will not live past six months to two years.
The child rider is purchased with the notion that your child’s funeral expenses will be fully covered. Death benefit ranges between $5,000 to $25,000. Insurance companies usually permit adding this to a policy when the applicant is between 18 and 65 years of age (yet with some, that range is 20 to 55; that is why you should get in contact with your insurance provider when considering this policy). You may not be able to get this if you are outside the age range, or if your children are past a certain age. You can add a child rider to your plan when your child is between 15 days to 18 years old. Coverage can last up until the child turns 25. Also, note that you may not be able to sign your child up if he or she suffers from a pre-existing and life-threatening condition.
The long-term care rider is similar in concept to the accelerated death benefit. With this one, the idea behind it isn’t based on having a short amount of time to live. In this case, those who require daily care are ideal candidates for this insurance rider. For instance, someone who has Alzheimer’s and requires daily assistance from health aides. This is a living benefit. It can be borrowed against, which is very useful because long-term care is a substantial expense to cover. For example, a year of having someone take care of you in your home will cost you $52,624.
Term conversion allows you to convert a term life insurance policy into a permanent one. The incentive behind this is that you can make the switch without being subject to a medical exam. And since you will no longer be on the term policy, this also means that you no longer have to worry about outliving your policy and losing out on your death benefit.
Waiver of Premium
You can only obtain the waiver of the premium rider while your policy is still in effect. This will become useful should you become critically ill, seriously injured, or become disabled. If any of this happens to you, you will not have to pay a premium to keep your policy.
Interested in final expense insurance? It’s easy to join, and we can get you approved over the phone. Call 1-877-674-0236 to get started today.