Available Riders
With most
life insurance companies
the applicant for a 10 year term life insurance policy may elect to add certain riders to the policy which would enhance the benefits to the owner. Here are some of them.
Waiver Of Premium Rider
The
waiver of premium rider
may be added to your 10 year term policy at a minimal cost. If you should become disabled while you own the policy, after six months of disability the insurance company will pay the premiums for you. You would have your insurance just as if you were paying for it yourself. Whenever you are able to go back to work again you pick up the premiums again. Nothing is owed to the insurance company for the missed premiums.
Accidental Death Benefit Rider
Let us suppose you had an automobile accident and died. If you had a 10 year term insurance policy with an
accidental death benefit rider
the insurance company would pay to your beneficiary the full face amount of the policy, plus the amount of the rider. Let us suppose you had a $100,000 10 year term life insurance policy with an accidental death benefit rider...double indemnity...and you died in an accident, the insurance company would pay $200,000 to your beneficiary. If you had triple indemnity the insurance company would pay $300,000.
Living Benefit Riders
Ever since the aids virus started spreading and killing people life insurance companies noticed that policyholders, because they were incapacitated, found themselves strapped for cash as the disease developed. They created a living benefit rider which could be added to new policies which would allow the policy owner to collect a portion of his or her death benefit before death. This is only if they are terminally ill. This would ease their financial burden and allow them to live out their lives with less financial pressure. You could add this rider to the 10 year term life insurance policy...if your company offers it.
Spouse And Child Riders
Some life insurance companies allow you to add a comparatively small spouse or child rider to your 10 year term life insurance policy. This is usually a
5 year
or 10 year term policy which would be cheaper than had the policies been bought separately.
Minimums And Maximums Each life insurance company has certain minimum and maximum amounts of insurance they would issue on an insured. One company may not issue less than $20,000 of 10 year term life insurance and not more than $1,000,000. This is just an example, as some companies offer as much as $10,000,000 or $20,000,000.
