If you’re confused about life insurance riders, it’s OK. Most people find them baffling. In short, adding a rider to your life insurance policy can create customized coverage that better meets your needs. But you probably have questions: What is an insurance rider? What are my options? Do I need one? Read on for everything you need to know about life insurance riders.

What Is a Life Insurance Rider?

Because your needs are specific to you, life insurance coverage is not one-size-fits-all. Riders are the optional, additional features offered that can help you enhance your coverage. Different policy rider options allow you to customize your life insurance, tailoring it to best fit what you need — and what you don’t.

What Are the Different Types of Life Insurance Riders?

There are various insurance riders, but not all will make sense for your particular situation. Understanding the different options will help you make a decision when it comes to picking which best fits your needs. It’s also important to note that not all riders are available for every type of life insurance coverage and some riders incur an additional cost.

Guaranteed Purchase Option

The guaranteed purchase option allows you to periodically purchase additional whole life insurance up to the amount stated in the policy without a medical exam.

Availability: AllLife and AccumuLife policies

Waiver of Premium

With this rider, if you experience a total disability that continues for at least 90 consecutive days, premiums will be waived for the duration of your disability.

Availability: Farm Bureau’s Whole Life and Term Life policies

Daily Living Rider

Daily living 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. This rider option can help with needs resulting from chronic illness, but it’s not recommended that you cancel, reduce, surrender or replace a long-term care or health insurance policy for this rider. 

Availability: Farm Bureau’s Whole Life, Universal Life and Indexed Universal Life policies

Living Benefit Rider

If you are diagnosed with a qualifying terminal illness, you can receive money by using a portion of the policy’s death benefit. This feature is provided at no additional cost. The living benefit rider is also known as the accelerated benefit rider in some states.

Availability: Not available in Nebraska on the Choice Term insurance policy, nor with the Simple Term product

Do I Need a Life Insurance Rider?

Whether you’re looking to convert a term life insurance policy to a whole life insurance policy or wanting to temporarily waive premiums if you become disabled, riders are the useful add-ons that can help make life’s surprises a little easier.

And we know that sifting through the complex details of life insurance policies and riders can be daunting. That’s why we’re here to help. Contact your local Farm Bureau agent today to discuss coverage options for you.