Thursday, 27 December 2012

What are the Important Life Insurance Riders?

Life insurance is a must at this current scenario. One could not predict what will happen in future. So a life insurance will secure the financial future of the family, if the unexpected death or disability of the bread earner happened. But when you take a life insurance policy, look for the available riders of the policy. A life insurance rider gives you additional benefit which plugin with the original policy with an additional payment. It is really beneficial to the policyholders or nominees. When one claims and earn Important life insurance ridersthe rider benefit, the rider will be over, but the original policy will remain till the time period or the death of the life insurance policy holder. Let us examine some important life insurance riders which are beneficial for the insured and his nominees.

Life Insurance spouse rider. Spouse rider helps to insure the life of the spouse of the person insured with a nominal additional amount. The benefit is that with one insurance policy you can insure the life of a couple. No need to fill out another policy document. The insured can deposit premium in one go. Low premium than taking two policies.

Accidental Death rider. Accidental death rider gives an additional sum insured, if the insured person died due to an accident. This rider normally provides double the insurance amount while the death occurred by an accident. But read the definition of accident in any particular policy before joining the rider.

Premium Waiver rider. Premium wavier rider allows to waive premium, if the insured becomes disabled due to any accident, illness or loss of income. This may be permanent or temporary.  If the disability or loss of income is only for a temporary period the premium will be waived only for the period. If it is permanently the premium will be waived forever till the end of the insurance term. This is more effective for child insurance policy. If the death or permanent disability of parent or guardian those who pays premium may be happening, the premium will be waived for the entire tenure of the insurance. Read the terms and conditions of the policy before joining this premium waiver rider.

Guaranteed Insurability rider, family income benefit rider, accelerated death benefit rider, child term rider, long term care rider, return of premium rider etc., are other important life insurance riders when you consider a life insurance policy. The terms and conditions of each rider may vary from insurance company to insurance company and insurance policy to insurance policy. So consider adding riders with your life insurance policies after verifying each rider carefully.

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