Policy Types

Life Insurance Riders

You can customize your life insurance policy by adding riders or special endorsements to enhance the policy to fit your specific needs. This article discusses a few common policy riders.

Life Insurance Riders: Taking advantage of policy benefits in your life insurance policy.

Life insurance policies can contain additional features that allow you to customize your coverage. Commonly referred to as policy riders or special endorsements, these features can be attached to a basic policy contract to enhance the flexibility and fit of the policy to meet your specific needs.

To help you understand more, we've put together a short list of common life insurance policy riders, along with the definition and key benefits they can provide. It's important to note that this is only a partial list of common riders and that not all insurance companies offer the same type of benefits. In addition, riders are subject to underwriting and may not be available with certain health conditions or occupations.

Accidental death benefit rider

An accident death benefit rider pays out an additional death benefit to the beneficiary (that's above the current benefit limit of the policy) if you should die as a result of an accident. If you're concerned about accidental death or you work in a potentially hazardous occupation and can't afford to buy sufficient life insurance coverage, adding this rider may be a more affordable option.

Accelerated death benefit rider

An accelerated death benefit rider allows you, as the policyholder, to use all or a portion of the policy death benefit for various expenses in the event you are diagnosed with a chronic, critical, or terminal illness. If you've been diagnosed with a certain disease or are suffering from an illness that significantly affects the quality of your life and need cash, the insurer will pay out the benefit prior to your death.

Waiver of premium rider

If you become totally disabled, unable to work and can't afford to pay your life insurance premiums, a waiver of premium rider allows you to stop paying premiums and still continue your policy until you are able to return to work fulltime. Your life insurance policy remains in force - just as if you were making premium payments yourself.

Disability income rider

The disability income rider provides both a waiver of premium and a supplementary income benefit if you were to become totally disabled. Typically, the disability income benefit is specified as a percentage of the face amount, and is payable monthly. For example, if the face amount of your policy is $50,000 and the disability income benefit is set at one percent, the rider would pay you $500 per month.

Additional purchase option (guaranteed insurability rider)

If you are unable to afford the amount of life insurance you need today, adding this rider allows you to purchase additional life insurance at a later date without having to prove your insurability. However, purchase options can be made only at specified times or for certain life events such as a marriage or the birth or adoption of a child. Because you never know how your health could change, and if you think you might want to purchase more insurance later, this may be a good option.

Term insurance rider

Added to a permanent policy, a term insurance rider can provide a fixed amount of term insurance for a specified period of time. If you have a temporary need for additional life insurance above the current face value of your existing policy and want an affordable way to have coverage, considering a term rider might be a solution for you.

Children's term rider

A children's term rider allows you to add term life insurance coverage on all children - natural, adopted and stepchildren. You may find this to be an affordable way to extend the benefits of your policy to your children.

Many of these common riders and endorsements come standard and are automatically included with your policy at no additional charge, while others require you to pay an additional premium. There are also specific riders that can only be added at the time the contract is written and can't be endorsed onto the policy once it has been issued. Because life insurance products and companies differ, not all riders and endorsements presented here are offered under every life insurance policy contract or offered by every insurer.

Getting the life insurance coverage you need … today

As you age, it gets more expensive to buy life insurance. Moreover, certain health conditions can make premiums increase - or worse, make it difficult to qualify for life insurance coverage at all. For the same price of a weekly specialty coffee drink, you'd be surprised at how much term coverage you can easily afford.

*Not all term policies or life insurance companies offer a conversion rider.

To get the information you need on types of life insurance, visit our learning center.

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This article is a high-level summary of things to consider when purchasing life insurance. The information presented is for information and educational purposes and meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective or its subsidiaries.

Neither Protective life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. For information about Protective life and its products and services, visit www.protective.com.

Life Insurance Riders

Life Insurance Riders can provide additional benefits and increase your peace of mind so if something goes wrong, there's a Plan B. When deciding on a life insurance policy, get more information about the different features and riders that are available and understand how they work. This article highlights only a few more commonly available riders. It is our hope this knowledge can help you create an ideal insurance package - one that offers you the best combination of features and benefits. For more information, visit our learning center.