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Life Insurance Riders, Part 1: Additional Benefit Riders

A life insurance policy is not as straight forward a product as you might think. In fact, you can build a life insurance policy that adds additional benefit beyond the death benefit paid upon death of the policy holder. These additional benefits come in the form of riders, which are additional contracts that can be tacked on to a life insurance policy.

There are many different types of riders. In this article, we are going to talk about additional benefit riders. These are riders that give you an additional benefit in your life insurance policy or additional access to your death benefit beyond accessing it after death.

Accidental Death Benefit

Not all deaths are the result of a long term illness or chronic disease. Some deaths are the result of an unexpected accident. An accidental death gives your family no time to prepare financially for your death and no time to emotionally prepare. That means that they may need additional resources upon your death to allow them the time and professional help necessary to grieve properly along with the financial resources to replace your income and pay off debts. An accidental death benefit rider can provide all these additional benefits and at a low additional premium.

Accelerated Benefit Rider

A terminal illness is difficult to deal with on an emotional level, but on a financial level it can be equally devastating. While suffering with a terminal illness you may not be able (or willing) to work. In addition, you may have medical bills and other treatment expenses that you can’t afford to pay for out of savings or with health insurance. Lastly, you may just want funds that enable you to live out some of your dreams with your family. An accelerated benefit rider allows you to access a certain percentage of your death benefit before you pass away. You must supply medical evidence of your terminal illness but once you do, the insurance company will provide you with funds that make your last few days, weeks or months more enjoyable, allowing you to focus on healing and enjoying your family rather than stressing over finances.

Before you agree to any particular riders, make sure that you get the details about the benefit and make sure that it fits in to your lifestyle and expectations so that you spend your money wisely on a benefit you and your family can use.




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