We’ve introduced the idea that life insurance policies aren’t quite “one-size-fits-all” products. Your age, medical condition, classification, lifestyle, and financial situation can all influence the policy you end up with. These factors will largely determine the type of policy you own, and the size of your premiums. The size of your death benefit is largely dependent on what you can afford and qualify for with your income.
There are other factors that help personalize your policy to your needs. These are called “riders.”
What do Riders do?
Good question. Riders provide additional forms of coverage not already included in your policy. Some riders can be added without additional costs, and some may even be added by default. Other riders, however, will increase your premiums. Some by a few dollars, some by double or triple your current rate. Not all of them will be worth the money, and not all of them will make sense for your situation.
Adding coverage for earthquakes on your home insurance might make sense if you live on a fault line in California. But you can probably save your money otherwise. Life insurance riders are similar. They are designed with specific situations in mind.
Examples of Life Insurance Riders
Let’s mention a few common riders.
The “waiver of premium rider” exempts the policyholder from needing to pay future premiums in the case of disability, injury, or illness that would keep them from working. If your premiums are expensive, this can be valuable. You’d much rather use your emergency fund to provide for your family than to keep your life insurance policy active.
The “guaranteed insurability rider” allows the policyholder to extend their coverage without needing additional medical checkups. If your health declines, or you experience significant life changes, this rider can help your policy continue and/or adapt with you.
An “accelerated death benefit rider” and the “long-term care rider” allow the policyholder to access a portion of their death benefit (or money from the insurance company) to help pay for medical treatment, long-term health care, and so on.
Other riders exist for children, guaranteeing the purchase of additional coverage in the future, accidental deaths, and the list goes on. Do some research. Talk with your life insurance agent. Some riders may be worth the investment, others may not be.
Aspen Life Settlements
Planning your life insurance policy is important, and preparing for the unpredictable can be challenging. Adding riders to your policy is one way to try to do this.
What if you didn’t add riders? What if you feel stuck with your insurance policy? What if you can no longer afford your premiums?
Aspen Life Settlements is here to help. We actually purchase most whole life (and some IUL) insurance policies, while letting you keep your death benefit. You don’t have to forfeit it to your insurer, or worry about qualifying for a traditional life settlement. We pay you for the policy, take over paying your premiums, and let you keep your death benefit.
Reach out today to see how much your policy is worth!