If you need more coverage than a life insurance policy offers, getting a life insurance rider may come in handy. Riders can give you the chance to customize your coverage by adding benefits to your policy. Let’s take a closer look at how riders work so you can determine whether supplementing your policy makes sense for your needs.
A life insurance rider offers optional benefits you can add to your life insurance plan. It’s designed to offer benefits or coverage you wouldn’t receive otherwise. You can use life insurance riders to help ensure your policy provides everything you’d like it to. While some riders can be added to your policy automatically at no charge, others can increase the cost of your premiums.1 Pricing for riders may depend on where you live, your coverage amount, and the insurance company you choose.
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There are many life insurance riders that may be available to you, including:
With the accelerated-death benefit rider, you can collect part of or all of the death benefit while you’re still alive if you get diagnosed with a terminal illness.2 These types of riders might also provide benefits if you experience a qualified life event – such as receiving an organ transplant, requiring long-term care or life support, or permanently move to a nursing home.1
A waiver of premium rider can cover your premiums if you’re unable to work due to a covered disability. Typically, you can only add it to a policy when you start your coverage, as long as you don’t have a pre-existing disability.1
If you have a chronic condition and can’t complete everyday tasks, like dressing, bathing, and eating, you may receive your death benefit with a long-term care rider. You can then use the money in any way you’d like.1
An accidental death and dismemberment (AD&D) rider provides benefits to your family if you lose a limb or pass away as a result of an accident.3 Some riders also cover paralysis and other injuries.
A family income rider disperses monthly payments to your beneficiaries upon your death. It’s intended to replace the income you provided.1
A cost of living rider will gradually increase your coverage so that it meets inflation. Premiums also increase with this type of rider.1
Some of the most noteworthy advantages of a life insurance rider are as follows:
If you don’t believe your policy offers enough coverage, a life insurance rider can be invaluable. You can receive the additional you need to financially protect yourself and your loved ones.
While some life insurance riders are free, others have benefits to fit most budgets. You don’t have to pay much more in premiums for additional coverage4.
With a life insurance rider, you can feel confident that your policy suits your particular needs. Getting a rider will provide you with the customization you want.
In many cases, you’ll need to add a rider to your life insurance policy when you first purchase it. However, there are exceptions to this rule. Depending on your life circumstances, policy, and life insurance company, you may be able to add riders to an existing plan.5 Consult your provider for details on which riders they offer and how to add them to your policy.
Your specific needs and personal situation will help you determine whether a life insurance rider makes sense. If you’d like additional coverage or feel your policy is missing an important benefit, riders are certainly worth exploring. It’s important to find out which life insurance riders at your disposal and how much they cost so you can make an informed decision.
If you hope to customize your life insurance plan, life insurance riders should be on your radar. Aflac offers several life insurance riders with some plans, such as the accelerated-death benefit rider and waiver of premium rider, that you might want to explore. Start chatting with an agent today to discuss your options and personalize your coverage.
Explore your life insurance options.
*Receipt of accelerated death benefits may affect eligibility for public assistance programs. Benefits may also be taxable, and are not expected to receive the same favorable tax treatment as other types of accelerated death benefits that may be available.
1 Nerdwallet - Life Insurance Riders: What You Need to Know. Updated July 6, 2021. https://www.nerdwallet.com/article/insurance/life-insurance-riders. Accessed April 5, 2023.
2 Investopedia - 8 Common Life Insurance Riders. Updated May 23, 2022. https://www.investopedia.com/articles/pf/07/life_insurance_rider.asp. Accessed April 5, 2023.
3 Policygenius - What is a Life Insurance Rider? Updated September 21, 2022. https://www.policygenius.com/life-insurance/what-is-a-life-insurance-rider/. Accessed April 5, 2023.
4 MoneyGeek – Life Insurance Riders: Everything You Need to Know. Updated February 9, 2023. https://www.moneygeek.com/insurance/life/what-is-a-rider/#rider-benefits. Accessed April 12, 2023.
5 FinanceBuzz - Life Insurance Riders: What They Are and When You Need Them. Updated April 3, 2023. https://financebuzz.com/life-insurance-riders. Accessed April 5, 2023.
Life – 68000 Series - In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400. Term/Whole Life – B60000 Series – In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Group Whole Life - Q60000 Series - In Arkansas, Policy Q60100CAR. In Delaware, Policy Q60200M. In Idaho Policy Q60100CID. In Oklahoma, Policy Q60100COK. In Oregon, Policy Q60100COR. In Texas, Policy Q60100CTX. Group Term Life Q60000 Series - In Delaware, Policies Q60200C. In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C.
The content herein is provided for general informational purposes and is not provided as tax, legal, health or financial advice for any person or for any specific situation. Employers, employees and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac insurance coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage underwritten by American Family Life Assurance Company of New York.
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