What is a life insurance “rider”?

Unless you work in the insurance industry, there is a good chance you have no idea what an agent is talking about when he uses the term “rider”. Unfortunately, too many agents take what they know for granted—as if everybody does (or should) understand what they are talking about when they are using jargon specifically tailored to the insurance industry. Hence, they may speak of a disability income rider, a children’s insurance rider, or an accelerated death benefit rider, and assume you know what they are talking about.

Without going into detail about any specific “rider” in this post, simply put, a life insurance rider is a supplemental benefit that can be added to your life insurance policy. In other words, in addition to the basic benefit of your policy paying out a specified amount of money if you were to die while it is active, there can be other benefits added to your policy that can provide additional financial assistance, such as income if you were to become disabled, income if one of your children were to die, or income if you were terminally ill.

There are numerous riders available that can be added to a life insurance policy. If you are interested in learning more about them, or perhaps adding one to a life insurance policy, contact us.

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2 Responses to What is a life insurance “rider”?

  1. I just learned about the different riders for life insurance, do you guys have some kind of list or maybe a link for all the different types of riders that can be purchased with life insurance? I’ve been looking for a good reference for a while. Thanks!

    • CEG Life says:

      Visit our Facebook page (www.facebook.com/ceglife), and our post on May 26th of this year links to an article titled, “The 9 most useful life insurance riders”. It is a helpful reference.

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