Insurance riders are add-ons to the basic plan. As the name implies, riders cannot exist on their own but instead are attached to life insurance policies. They offer additional protection to the policyholder and enhances a plan’s coverage at a fraction of the cost. Because of its affordability, most riders offer only pure protection and does not have any cash value upon termination. They offer additional protection for a given period and often expire after a number of years or when the policyholder reaches a certain age. To illustrate, a basic plan is like your meal and the riders are the food supplements that you take. Here are some common riders that can be found in the market today.

Waiver of Premium

One of the most common riders. This rider waives all future payments if the owner becomes totally and permanently disabled. Succeeding premiums are waived if the policyholder can no longer perform his given occupation due to disability.

Payor’s Benefit

This is a popular rider among parents who get life insurance policies for their children. If the parent passes away, all future premiums will be waived. This gives peace of mind, knowing that the policy of their children will continue to be in-force even if they are taken out of the picture.

Accidental Death & Dismemberment

The Accidental Death and Dismemberment Rider (AD&D) gives the policyholder additional accident insurance which covers death, dismemberment, disablement and/or major burns caused by accidents.

Daily Hospital Income

The Daily Hospital Income Rider provides a cash benefit in case of hospital confinement. It is designed to ease the financial pressure on the part of the policyholder by replacing lost income while they are hospitalized.

Critical Conditions Rider

The Critical Conditions Rider gives a lump sum cash benefit to the policyholder upon diagnosis of specific health conditions such as (but not limited to) cancer, heart attack, or stroke. It also provides flexibility in that the money can be used for non-medical costs related to the illness, including tuition fees, rent, or groceries.

Term Rider

A Term Rider provides additional life Insurance coverage for a very minimal additional premium. For the length of the rider, the death benefit is increased by up to five times the original face amount of the basic plan.

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