Insurance Riders — Additional Protection for Your Needs

Insurance riders are valuable options that you can choose as additional to basic insurance contract you have. By having insurance riders, you as the insurance holder will get more benefits as extra to you basic policy. Some of insurance riders are so common that they are naturally inserted as part of the policy. Additional premium are quoted as component of the whole insurance policy premium. This give the policy holder less total premium compare of buying a separate stand alone insurance policy. Below are some several insurance riders that can be found on most insurance providers to give additional benefits for you:

Double Indemnity

Double indemnity will pay your beneficiaries — in the event of your accident or death— double the policy’s value. This is because the beneficiaries will receive main policy face value and rider face value at the same time. Some insurance providers will give you to option to buy triple indemnity riders —that will give triple amount— for other events like having an accident while traveling with common carrier or other inadvertent cases. But bear in mind that as most insurance riders, double indemnity will not cover suicide or death due to illegal activities not mentioned in the insurance terms and condition.

Permanent Disability Waiver

You can buy a permanent disability waiver with only a small additional premium for an event of your permanent disability. Permanently disabled period should be occurred before the age 65 (or 60 depend on the company providers). This is one of the most advised insurance riders if you want to secure your future in the unavoidable event.

If you become totally permanently disabled, the remaining insurance premium will be paid by insurance company on behalf of you. Simultaneously, you will not losing the provisions of insurance contract due to your permanently disable condition. It is still in effect. But you must take note that your disability period will be covered if it is longer than six months period. On the other hand, the waiver is retroactive starting right from the beginning of your disability period.

As you can see, permanent disability rider is a great protection in time of emergency or when you don’t have source of income. Not only it replaces the compulsory to pay regular premium, you can depend on it as your moneymaking machine. Consider this, after the waiver kick off; its value is increasing over the time. You can withdrawn or borrow some for cash if you need them.

You may even be able to change it over into a permanent policy such as universal life insurance or whole life during your permanently disabled period. You can use the waiver immediately. In the event if the rider allows for it, the insurance company will pay the new premiums. When you are permanently disabled, this is such an unbelievable benefit.

Partial Disability Benefit Rider

A partial disability benefits rider will give you some benefits in the event of you are partly disabled. This is the condition when you are unable to perform some or all of the duties of your work (main job) on a full-time basis.

Still, a partial benefits rider does not pay benefits based on the percentage of earnings —or potential earnings— that you have lost during your disability period. You will only get some percentage of your monthly benefit for some duration (most of the time, this period lasting from 3 to 6 months). To be eligible for part disability benefit rider, first you may need to qualify for total disability benefit. This is a requirement before you are able to collect under this partial rider.

When you are only temporarily disabled, it is common that you will need to pay a new higher premium once you are back to your work.

Insurability Protection

When you are having a young family, this is the insurance rider that is commensurate your condition and one that you won’t miss. Insurability protection will give the insured the choice to buy extra insurance at certain ages with specified amounts. The good news is, for health insurance, you can buy them without further physical examination. This is such a good deal for you: your insurability is guaranteed and at the same time the premiums for additional riders are low.

Insurability protection will give you guaranteed in the even of you become permanently disabled or ill. Should you have other waiver in the first hand, you can exert this rider during your disability period. At this time, the insurance company will pay additional premium during your disability period advantage worth having. (Photo: Frazzled Jen)