• • Riders are a way to amend or add to your life insurance policy.
  • Some riders increase your coverage, while others expand coverage to family members like a spouse or child(ren).
  • Riders may enhance the value of your life insurance, but can raise premiums as well.

Your life isn’t like everyone else’s life, which means your life insurance needs aren’t like everyone else’s, either. So, it’s only natural to have questions when you’re buying life insurance to find the right fit for you.

Once you choose your life insurance plan, you may also decide that you need additional coverage that’s not included in your policy. This is where riders come in handy.

So, what are riders? Do you need a rider? If so, which riders do you need? You’ll find many of these answers and the basics of life insurance riders explained below.

What is a life insurance rider?

A life insurance rider adds additional benefits and protection options to your life insurance policy, in exchange for a small increase in premium. Different riders provide different benefits or protections, and you can have more than one rider on your policy.

Many riders can be added only when your policy is originally issued. Study each type of rider and decide if it is something you might need before making your initial policy purchase.

Types of life insurance riders

There are several different types of riders, including ones that expand or enhance your policy, and ones that provide protection against various risks to your coverage.

Accidental Death Benefit

An accidental death benefit, or ADB, rider provides an additional death benefit payout in the event that your death was the direct result of a covered accident or from injuries caused by a covered accident within 90 days of the event. If your death meets these qualifications, your beneficiary will receive the death benefit plus the accidental death benefit.

Family ADB

A family ADB rider expands on the accidental death benefit by providing a death benefit for any spouse or dependent children (ranging from 50% to 100% of the base benefit amount for a spouse, depending on circumstances, and 10% to 20% for a dependent child.) A family ADB policy also provides a small additional benefit if death occurs in a vehicle to a person wearing a seat belt, and another benefit to help pay for college for surviving dependent children ages 15 to 22.

Inflation

An inflation rider increases the amount of your death benefit by 25% over the first six years your policy is in effect, helping to defray the effects of inflation on your death benefit. This ensures that your beneficiary will have the buying power needed to meet the financial goals the policy was bought to protect.

Return of Premium

A return of premium rider provides for the refund of your premiums paid should your insurance policy reach the end of its term and you have not passed away. This return of premium can be used as a lump sum windfall to help pay off a home mortgage, finance a wedding or vacation, or bolster a child’s college fund.

Child

A child policy provides a way to cover final expenses in the event your child should pass away, freeing you from anxiety or concern about funeral expenses should the worst happen. A child policy can also provide a way for a child who is diagnosed with a severe illness to maintain insurance by converting a child term life policy into a whole life policy. This helps ensure coverage despite changing medical conditions.

Terminal Illness

A terminal illness rider (also known as an accelerated death benefit) allows you to access and withdraw a percentage of your death benefit yourself in the event you are diagnosed with a terminal illness and given only a short time (usually less than 12 to 24 months) to live. The remainder of your death benefit will pay out to your beneficiary consistent with the terms of your policy.

These riders can substantially enhance the value of your life insurance policy and provide protection against unforeseen events.

Questions about life insurance riders

Are There Term Life and Whole Life Insurance Riders?

Yes, Fidelity Life has options available for both term life insurance riders and whole life insurance riders. Talk to a life insurance agent about your rider options to find the ones that make the most sense for your lifestyle, your family, and your needs.

Which of These Life Insurance Rider Types is a Better Choice for Most Applicants?

Fidelity Life offers a range of life insurance riders for extra protection, and the best choice for you will depend on the type of coverage you need. If you work in a high-risk job, such as construction or as an airline pilot, you may want to add an accidental death rider. If your family’s medical history includes heart disease or cancer, you may want to add an accelerated death benefit rider. If you’re unsure which rider is best for you, talk to a life insurance agent about your needs to ensure you’re adding the best riders to protect you and your family.

Will Adding a Life Insurance Rider Increase the Cost of Life Insurance?

In some cases, life insurance policy riders can increase your premiums, since they offer benefits beyond the scope of your life insurance policy. It’s like purchasing car insurance and going beyond the initial collision coverage to add liability, rental car insurance, or tow insurance. Adding these options to your car insurance policy may cost more, but it also ensures that you’re covered for a wide variety of scenarios if you get into a car crash. Life insurance riders work in a similar way, giving you extra protection in case you need it.

There are several things that affect how much you’ll pay for your life insurance riders. These can include your age and health, the size of your death benefit, and your term length if you choose term life insurance. Check with your life insurance agent to get an accurate quote based on the policy and riders you have in mind.

Are Life Insurance Riders Worth It?

Buying life insurance helps make sure that you and your loved ones are covered if you pass away. Adding riders to your policy can provide extra coverage in unforeseen situations, like a terminal illness or an accidental death, that may not be included in your initial life insurance policy.

For example, the various types of riders in life insurance can help expand coverage of your policy to include your partner or children. Another life insurance rider example is a rider that allows you to increase a payout if you happen to die in an accident. Or, you can even add a rider that allows you to access your benefits early if you receive a terminal illness diagnosis. Riders enable you to adapt your life insurance coverage to prepare for many scenarios, as well as to tailor your coverage to your financial needs. Once you’ve purchased a rider, it remains active for as long as your policy does, in most cases.

With life insurance riders, you can:

• Create a customized policy that suits your individual needs.
• Add benefits to a new or existing policy.
• Add as many riders as you need to make sure you’re completely covered.
• Pay lower premiums when you combine insurance policies for additional family members.

When shopping for life insurance riders, think about the potential benefits to your family along with the costs. Some riders are included free with your policy, so there’s no downside to adding them. Others can increase your premiums, so think about how likely you are to need that protection – and the risks of not buying it. For example, if you’re older or have a history of cancer in your family, adding a terminal illness rider can give you confidence that your family will be able to cover medical bills if you get sick. Just like life insurance policies themselves, the right life insurance riders depend on your personal goals and budget.

It’s important to ask your life insurance agent about the options that are available to you when purchasing or updating your life insurance policy. Even if you eventually decide that you don’t need all of the riders available, you may realize that one or two are applicable – and even crucial – in protecting your family’s financial future in a worst-case scenario.

How Do I Add a Life Insurance Rider to My Policy?

Usually, you can add life insurance policy riders at the same time that you choose your life insurance plan. But, if you decide later on that you’d like to add a rider to your life insurance policy, some life insurance companies will allow you to add a rider to your current policy while it’s still active. One other important thing to note: If you do make a claim on the rider while your policy is active, this might end up terminating your rider, even if your original policy continues to cover you.

What Are the Best Life Insurance Riders?

The best life insurance riders protect you and any of your growing needs. For example, if you have a baby, you may want an accidental death benefit rider and a family accidental death benefit rider to provide additional coverage for your spouse and your child. If you’re worried about inflation and the cost of college increasing, you may want to add an inflation benefit rider so your policy will keep pace with the times. The best life insurance rider protects you and your family in case the worst happens and you suddenly pass away. If you’re still unsure about which riders to add to your life insurance policy, talk to one of our agents about your options.

Explore life insurance riders from Fidelity Life

Life insurance riders may add to or amend a life insurance policy. There are several kinds of riders available from Fidelity Life.

• Accidental Death Benefit
• Family Accidental Death Benefit
• Terminal Illness
• Child
• Inflation
• Return of Premium