The Three Riders You Should Add To Your Life Insurance Policy

Purchasing a life insurance policy is a great way to increase your peace of mind and provide a sense of stability for your loved ones.  However, obtaining your policy limits is just the first step on the path to ensuring that you are covered in the most complete way possible.  The next leg of the journey involves selecting the riders, or policy add-ons, that will make your policy even more valuable.  Use this information to learn more about the riders that you should include in your life insurance policy.

The Term Life Rider

One of the most essential riders that you should add onto your life insurance policy is the term life rider.  This rider gives you the right to convert your term life insurance policy into a whole life policy without the need to undergo a medical examination.

This rider is absolutely critical because if you pay into a term life insurance policy for twenty years, you may have health conditions at the end of the term that you didn't have when you initially purchased the policy.  If you don't have this rider, your insurance company may be able to cancel your policy at the end of the term due to your medical issues.  You would have paid all of those premiums to no avail. 

The Disability Income Rider

The disability income rider gives you the right to collect income from the insurance company in the event that you become totally disabled.  Based upon the options that you choose, your payments will last until you become well again, or until a specified term has been reached.

If you include this rider with your policy, be sure to find out if there limitations concerning the way that a disability was acquired.  For instance, some companies will only pay if you become disabled as a result of an accident, but will not pay disability income for people who become that way because of an illness.

The Withdrawal Provision Rider

When you include the withdrawal provision rider in your life insurance policy, you essentially have a savings account at your disposal should you run into financial problems.  With this rider, you are able to borrow money against your policy up to the cash amount that you have put into it.  So, if you have paid $1,000 dollars in premium payments, you can borrow up to that amount.

Keep in mind that any money you borrow against the policy is subtracted from the total value of the policy until you pay it back.  So, if your policy is for $10,000 dollars and you've paid in $1,000 worth of premiums that you then borrow, your life insurance policy is actually only worth $9,000 dollars.

Your life insurance agent can provide you with additional information concerning these policy riders.  Contact an insurance professional today so you can get a life insurance policy that is perfectly tailored to you.