Adding a rider to your life insurance policy can create more customized coverage to meet your needs. But you probably have questions: What are the different rider options? Why would I need to add a rider? We address these common questions below.
What is a Life Insurance Rider?
Because your needs are unique, life insurance coverage is not one-size-fits-all. You may want to consider adding additional features (also known as riders) to enhance your life insurance coverage. These options allow you to customize your coverage to fit your unique needs.
Types of Life Insurance Riders¹:
There are different types of riders that can be added to certain policies, but not all riders will make sense to add to your coverage. You can pick which rider fits your needs. It’s also important to note not all riders are available for every type of life insurance coverage. Here are several examples of riders:
- Guaranteed Purchased Option — This rider allows you to periodically purchase additional whole life insurance up to the amount stated in the policy without a medical exam. ²
- Waiver of Premium — If you experience a total disability that continues for at least 90 consecutive days, premiums will be waived for the duration of that disability.³
- Daily Living Rider — This rider accelerates a portion of your policy’s death benefit if you have been chronically ill for at least 90 days and are ill for another 90 days or longer.⁴ ⁵
- Living Benefit Rider — If you are diagnosed with a qualifying terminal illness, you can receive money by utilizing a portion of the policy’s death benefit. This feature is provided at no additional cost.⁶ ⁷
Knowing what riders to add to your policy can seem daunting, but your local Farm Bureau agent can help you choose the right policy and riders. Contact an agent today!
¹Some riders can be added for an additional cost.
²Available on AllLife and AccumuLife policies.
³Availalbe on Farm Bureau’s Whole Life and Term Life policies.
⁴Available on Farm Bureau’s Whole Life, Universal Life and Indexed Universal Life policies.
⁵ The Daily Living Rider is not to be purchased as a long-term care or health insurance policy, but can provide help with needs resulting from chronic illness. In most situations, cancelling, reducing, surrendering or replacing a long-term care or health insurance policy for this rider would be considered unsuitable.
⁶ It is not available with the Simple Term product.
⁷ The Living Benefit Rider is known as the Accelerated Benefit Rider in some states. Not available in Nebraska on the Choice Term insurance policy.