"Life Insurance"
Common Policy Term Riders
A rider is an extra benefit that is added to a policy in addition to the basic death benefit. Some riders are built-in, or come with the regular policy without charge. Others require additional premium.
Nearly all modern term policies have a rider called the Accelerated Death Benefit. This rider is typically added to the policy at no extra charge and is designed to pay an portion of the death benefit before you die. The “catch” is that you must have a verified medical diagnosis indicating you have less than 12 months to live.
A common rider added for additional premium is a Child/Children’s Rider which provides a death benefit should a child of the policyholder die. The death benefit amount is generally designed to cover final expenses and rarely is allowed to exceed $20,000. The rider is for all children of the policyholder (subject to age limit). The extra premium for the rider is the same whether the policyholder has one or more children. The death benefit limit applies to each child.
A Waiver of Premium rider is a feature that will pay your life insurance premium should you become permanently disabled. The thinking behind this rider is that if you are disabled and cannot generate an income you will likely stop paying for your life insurance premium in favor of other expenses like rent, mortgage, or groceries. With a waiver of premium rider, your life insurance policy can continue, but usually not indefinitely.