When you are looking for life insurance, it is important to understand the different types of policies that are available. One option is term insurance, which provides coverage for a specific period of time. Riders are optional & provide added benefits. In this blog post, we will discuss why term insurance riders should be a part of your term life insurance policy.
What is Term Insurance?
Term insurance is a type of life insurance that provides coverage for a specific period of time. The term can be for 10 years or more. If the policyholder dies during the term of the policy, the beneficiaries will receive a death benefit. Term insurance is generally less expensive than other types of life insurance. There are numerous benefits to term insurance, but it is important to understand that it does not build cash value like whole life insurance.
Some popular benefits include:
- Coverage for a specific period of time
- Lower premiums
- No cash value
- Death benefit for beneficiaries
What are Riders?
Riders are optional. They can be added to your term life insurance policy. They are generally used to customize a policy to meet the needs of the policyholder. Some riders provide additional death benefits, while others offer living benefits.
Some popular riders include:
- Accidental death benefit rider
- Waiver of premium rider
- Children’s term rider
- Disability income rider
- Hospital confinement rider
Riders can be beneficial, but they also come at an additional cost. You will need to weigh the pros and cons of adding a rider to your term life insurance policy before making a decision.
Should you add riders to your term insurance policy?
The answer depends on your individual needs and circumstances. If you have young children, you may want to consider a child term rider that provides coverage for your children in the event of your death. If you are concerned about being able to keep up with your premiums, you may want to consider a waiver of the premium rider. This rider will waive your premiums in the event that you become disabled and are unable to work.
With that being said, the following are some major benefits of riders that you should keep in mind:
· Cost-Effective:
Adding a rider to your term life insurance policy is generally more cost-effective than purchasing a separate policy.
· Enables customization:
Riders allow you to customize your term life insurance policy to meet your specific needs.
· Added protection:
Riders can offer additional benefits such as death benefits, living benefits, and waiver of premium riders.
· They do not require any Additional Documents:
When you add a rider to your term life insurance policy, you will not need to provide any additional documents.
Conclusion
There is no right or wrong answer when it comes to whether or not you should add riders to your term insurance policy. It is important that you understand the different types of riders available and how they can benefit you. You should also be aware of the additional cost that riders may add to your premium. Ultimately, the decision of whether or not to add riders to your term insurance policy is up to you.
