Life insurance riders are also known as an endorsement, it is an addition to a life insurance policy that typically expands the benefits provided by the contract. Riders give you the ability to customize your coverage and add more flexibility to your policy.
Coverage That Goes Further
Accidental Death Benefit Rider
Accidents happen anywhere, at any age. An Accidental Death Benefit rider provides additional coverage if you were to die in a covered accident. It may even double the amount of the original death benefit (Double Indemnity). In some cases, this rider will also allow for Compensation Payment for loss of a limb or dismemberment. Having this rider attached to your life insurance policy can give your family greater peace of mind in the event of your death due to an accident.
Accelerated Death Benefit/Critical Illness Rider
If you’re diagnosed with a terminal illness while your life insurance policy is in force, this rider enables you to collect all or part of the death benefit while you’re still alive. This will allow you to pay for medical expenses or other additional expenses you incur as a result of your illness. This may take away some of the financial burden on you and your family. (Note: Any early payments received will be deducted from your total death benefit as an early payment. Each insurance company has different rules about how much can be accessed, and how it affects what’s left of your total death benefit).
Extra Protection for You and Your Family
Child Protection Rider / Term Rider
This option provides coverage for your child’s final expenses, in case the unthinkable happens. It can be used to pay for funeral or medical expenses, depending on how much coverage you buy. Insuring your child is one of the easiest and most affordable ways to establish a financial foundation and future insurability while they’re still young and healthy. These policies may require that you provide health information for your child, but typically do not require an exam.
Disability Waiver / Waver of Premium Rider
Disability Waiver / Rider (Waiver of Premium) is a feature that will pay your premiums if you were to suddenly become disabled. This rider typically has a waiting period of 6 or more months before benefits can be claimed, and typically requires that your disability is renders you unable to perform gainful work. Can you think of any other product that promises that if you can’t make your payments due to being disable they will make those payments for you?
The types of disabilities / injuries covered and length of time to qualify may vary by insurer and product, and are specified in the insurance policy.
Family Income Benefit Rider
Upon your death, this feature allows you to set up your policy so that your family or beneficiary will receive monthly payments, rather than a lump sum. This will allow for a steady flow of income vs. a lump sum that will need to be saved or invested. This can be a very valuable provision for people who are not very skilled with handling money.
Cost of Living Rider
Some policies offer a Cost of Living rider that links your death benefit to the Consumer Price Index (CPI). This allows for automatic additional coverage, to help counter inflation over the life of your policy. In other words, your family can receive more that the face value of your death benefit.
Disability Income Rider
If you become disabled and can’t work, you can receive a monthly payments to help replace a portion of your income during the disability. Generally, any ongoing premium payments will typically be suspended until you recover or are able to go back to work. The specifics include the types of disabilities covered, the payment amount, and the length of time you must be disabled before you can collect. These will vary from policy to policy. All of the rules will be spelled out in your documentation.
Guaranteed Insurability Rider
With a Guaranteed Insurability Rider, you have the option to buy additional life insurance at a later date, without the need for a medical exam, and at the same health classification as you currently qualify for. This can be of great value, because as life changes, a sudden disability or health condition could cause you to become uninsurable, or greatly increase your rates for any new or additional coverage. Events like marriage, child birth, adoption, buying a new home, will change our life insurance needs. Most policies have specific limitations and requirements that will be outlined in the documentation.
Long-Term Care Rider
This rider provides you access to a portion of your death benefit, if you reach a stage in life where you require A Long Term Care(LTC). Typically, this requires that you need help with two or more of the Six Activities of Daily Living or you have a severe cognitive impairment (typically this includes Alzheimer’s disease or other forms of dementia). Below is a list of the Six Activities of Daily Living:
- Eating
- Dressing
- Bathing
- Toileting
- Continence (the ability to control your bladder and bowel movements)
- Transferring (the ability to get yourself out of a chair or bed, walk across the room and sit in another chair)
Life insurance with a LTC rider is almost always simpler to qualify for than Long Term Care insurance. And unlike a traditional Long Term Care policy, it can be designed to have guaranteed level premium. About 69% of Americans will need long term care at some point. This rider is a great way to ensure that if you ever have need of long term care, it’s there for you.
(Note: Any Long Term Care payments will be deducted from your total death benefit, and the total amount you can collect will be capped at your total death benefit for your policy. Provisions vary from insurance company to insurance company).
Future-Proof Your Term Policy
Return of Premium Rider
Return of Premium Term Life insurance (ROP) is a feature that offers a guaranteed 100% return of your premiums at the end of the term period, assuming the insured person is still living. A 40 – year old Male in excellent health buying a 30 – year $1 Million ROP policy will cost about $84,000 over the 30 – year term, and at the end of the term you will get all $84,000 back. This option tends to approximately double the up-front cost an ordinary 30-year level term policy.
Term Conversion Rider
A Term Conversion rider gives you the option of converting your Term Life insurance (temporary) policy to a permanent policy like Whole life or Universal life. This is also known as a convertibility option. This option guarantees you the right to convert to a permanent policy without the need for a medical exam or health questions. This is a valuable option to have when you are younger and in good health, and perhaps can’t afford a Whole Life or Universal Life policy, but gives you the option to convert at a later date. This option can save you money on a permanent policy, if your health has deteriorated from when you originally purchased your Term policy. Most policies have specific conversion requirements outlined in the documentation.
Life Insurance Rider: FAQs
What is a life insurance rider?
A life insurance rider is an optional add-on that enhances or customizes your base life insurance policy. Riders offer extra benefits — such as living benefits, disability coverage, or additional insureds — usually for an additional premium. They help tailor your policy to fit your personal needs.
Why should I consider adding riders to my life insurance policy?
Riders allow you to personalize your policy for specific financial concerns. They can provide:
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Extra protection for family members
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Access to benefits while still alive
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Added income protection
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Additional coverage without multiple policies
Riders make your policy more flexible and comprehensive.
What are the most common life insurance riders?
Popular riders include:
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Accelerated Death Benefit Rider
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Chronic Illness Rider
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Critical Illness Rider
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Accidental Death Benefit Rider
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Waiver of Premium Rider
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Child Term Rider
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Return of Premium (ROP) Rider
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Guaranteed Insurability Rider
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Long-Term Care Rider
Each rider adds unique value depending on your goals.
What is an accelerated death benefit rider?
This rider allows you to access a portion of your death benefit while you are alive if diagnosed with a terminal, chronic, or critical illness. Funds can help pay for treatment, medical bills, caregiving, debts, or everyday expenses.
What is a waiver of premium rider?
If you become disabled and unable to work, this rider waives your premium payments while keeping your policy active. It helps ensure your life insurance stays intact during a loss of income.
How does a chronic or critical illness rider work?
If you experience a qualifying serious medical condition — such as heart attack, stroke, or cancer — you can access part of your death benefit to help cover costs. These riders function like living benefits, providing financial relief during recovery.
How does an accidental death benefit rider work?
This rider pays an additional death benefit if death occurs due to a covered accident, increasing your overall coverage at a low cost.
What does a guaranteed insurability rider do?
It gives you the right to purchase more life insurance later — without taking another medical exam — at specific ages or life milestones (marriage, having a child, etc.). It protects insurability even if your health changes.
Can I add riders to an existing policy?
It depends. Some riders can only be added when the policy is first purchased, while others may be added later if you meet underwriting requirements. Rules vary by insurer.
Do riders increase the cost of my insurance?
Yes, most riders come with additional premiums. However, many riders — like accelerated death benefits — are included automatically at no extra cost. Rider pricing depends on the coverage type and insurer.
Can riders be removed if I don’t need them anymore?
Often, yes. Many riders can be cancelled or dropped, which may reduce your premium. However, some riders (like guaranteed insurability) must be kept from the start.
Are riders available on both term and whole life insurance?
Yes. Many riders — such as accidental death and waiver of premium — are available on both types of policies. Riders involving cash value (e.g., long-term care riders) may be limited to permanent policies.
How do I know which life insurance riders I need?
The right riders depend on your:
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Budget
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Health
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Family needs
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Income protection requirements
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Long-term financial goals
A licensed advisor can help tailor a rider package that provides meaningful protection.
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