Jul
27
2007
Allstate’s site had an excellent explanation of different riders, so instead of re-creating the wheel..here it is:
Many life policies offer extra features called riders for an additional cost. You may be able to add riders to provide life insurance coverage for your spouse or children. Other riders pay your insurance premiums if you become disabled, or pay you part of your policy’s death benefit early if you become terminally ill.
Every person has a different idea of what financial security means. If something should happen to you, how much money would your family need? You should consider:
· Your current debt
· Expenses your family can expect to pay after your death
· Your family’s future needs
There’s a good possibility your life insurance needs may increase as your life progresses. You may want to consider adding additional coverage to your existing policy depending on your specific needs, desires and circumstances. Some insurance riders might include:
Additional Insured Rider
This rider provides additional term insurance for your spouse, and remains in force as long as coverage continues, or until your spouse reaches a certain age. The rider can also be taken out for another close family member, such as a parent, sibling, child or grandchild.
Children’s Level Term Rider
This rider gives you insurance on children of eligible age. You can convert the policy into a greater amount of permanent coverage when the child reaches a certain age, regardless of their health at that time. This is a great way to insure your children now, and enable them to increase their insurance when they’re adults.
Waiver of Charges
If you become disabled prior to a certain age, this will pay the minimum premiums required to keep the policy in force.
Acccelerated Death Benefit
This rider provides partial benefits early if you should suffer a terminal illness that will result in death within a certain amount of time. This allows your family to benefit from your policy while you’re still living.
Return of Premium (ROP)
A rider that allows you to receive a benefit equal to 100 percent of the premiums paid if your policy is still in force at the end of your guaranteed term period.
