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Life Insurance

Riders

Riders are amendments that modify the conditions of a policy by either increasing or decreasing benefits. They are issued at the option of the insured and may have an additional cost associated with them. The accidental death and waiver of premium riders are the most commonly issued.

Disability Riders

Waiver of Premium

In the event the insured becomes totally disabled, the life insurance company will waive the premiums for the duration of the disability. Policy cash values and dividends continue as under normal payment circumstances. There may be additional restrictions including an elimination period prior to which payments are be waived.

Waiver of Payors Premium

In the event the premium payor becomes disabled or dies, the premium will be waived. It is typically found on juvenile policies where the policy owner and the insured are two different people. If such a rider were added to a juvenile policy, premium waiver continues until the insured reaches a particular age, usually 21 to 25.

Death Benefit Riders

Accidental Death (Double Indemnity)

In the event death is the result of an accident, the policy normally pays double the face amount. The rider does not cover death by sickness and has no effect upon the cash value or dividend while the policy is in force.

Guaranteed Insurability

Without evidence of insurability, the insured may at certain times purchase additional protection insurance protection. Premiums incurred at determined at the attained age of the insured.

Return of Premium

Issued in the form of increasing term insurance and equal to the amount of premiums paid. The rider returns the amount of premiums paid to the policy beneficiary if the insured dies within the period of the term coverage, in addition to the face amount.

Cost of Living

A rider issued in the form of increasing term insurance that increases proportionally with the Consumer Price Index.