Extra Life Insurance Products You Should Know About

If you have shopped for life insurance, you probably know all about how term life insurance is better if you are on a tight budget, and how if you are doing well financially then you should consider the benefits of whole life insurance (which with various options could grow as you out money in and give you a greater benefit in the long run).

However, there are many more options to choose from when looking at life insurance, with the main option being riders. Riders are the changes that you make to your basic policy to cover extra events within your insurance policy. The common example of a life insurance rider is accidental death insurance. This is in effect known as double indemnity, and if you should die in a stipulated accident, your beneficiary would get double the payout.

There is an addition to this which is called a Dismemberment Rider that comes into effect if the insured party loses eyesight in both eyes or loses two limbs – the full rider will be paid out. This is usually referred to as an AD&D (Accidental Death and Dismemberment) Rider.

Another common rider is a premium waiver, which waives further premiums if the insured becomes disabled. Since premiums need to be paid strictly on time (some would say religiously) for them to be in effect, a disability that stop someone from earning income would impact on their premium payments. It is wise to see what your life insurance company has as rules for this rider, as not reading these rules carefully can cost you your insurance!

The Accelerated Death Benefit Rider allows people who have life insurance the option of taking out a portion of their insurance before they die if they become disabled or are diagnosed with a terminal illness. This is a help as the medical costs associated with disability or terminal illness can be debilitating and with the spiraling costs of medical care, it is always good to have some extra cover.

Disability Income Rider’s provide a monthly income from the insurance company is the insured becomes totally and permanently disabled. The rider will specify how long the income receiving period lasts.

Guaranteed Insurability Riders are very useful in this day and age when cancer and AIDS are ever increasing concerns. Should you contract a terminal illness or AIDS during the term of your insurance, you will not find any insurance company willing to underwrite you. With this rider in place, you will automatically qualify for insurance, no matter what your present health is like.

The Level Term Rider is a very important rider for people who are able to finance a whole life insurance. This rider will double (in some cases even go up to 5 times the amount) the amount paid to beneficiaries stipulated in the policy if the insured party dies within a specified time frame.

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