2 Life Insurance Riders (Appx)

Question 1

Waiver of Premium Rider

(for Life Insurance)

Answer 1

Future premiums are waived if the insured becomes permanently disabled as a result of injury or illness prior to a specified age.
The disability waiver may have an elimination period before premiums are waived, such as 90 days.
Typically, after the elimination period is satisfied, the premiums paid during the elimination period are refunded.

Question 2

Terminal Illness Rider

(for Life Insurance)

Answer 2

Allows a portion of the policy death benefit to be paid while the insured is still alive if the insured has been diagnosed with a terminal illness.

Question 3

Spouse Term Rider

(for Life Insurance)

Answer 3

This rider allows the spouse of the base policy insured to have a term life insurance rider under a permanent policy insuring their spouse.

Question 4

Return of Premium Rider

(for Life Insurance)

Answer 4

Refunds the premiums paid over a specified term if the insured is alive at the end of the period or refunds the premiums paid to the beneficiary at the death of the insured. The insured pays an additional premium for this rider.

Question 5

Long-Term Care (LTC) Rider

(for Life Insurance)

Answer 5

This rider typically allows a portion of the policy death benefit to be paid while the insured is alive and is in need of long term care services

Question 6

Guaranteed Insurability Rider

(for Life Insurance)

Answer 6

This rider allows you to purchase additional insurance coverage in the stated period without the need for further medical examination.
The option often is structured in a manner such as every 3 years from age 21 to 40 or some other interval

Question 7

Family Income Benefit Rider

(for Life Insurance)

Answer 7

This rider pays a monthly income to the beneficiary in addition to the policy face amount for a stated period of time to help with expenses in a transition period after the death of the insured.

Question 8

Child Term Rider

(for Life Insurance)

Answer 8

This rider provides a death benefit in case a child dies before a specified age. After the child reaches maturity, the plan can be converted into permanent insurance, often up to a multiple of the rider amount, perhaps 4-5x, without the need for medical underwriting.
These riders typically insure all children of the insured parent at one premium cost

Question 9

Accidental Death Rider

(for Life Insurance)

Answer 9

An accidental death rider pays out an additional amount if the insured dies as the result of an accident. Normally, the additional benefit paid out on death due to an accident is equivalent to the face amount of the original policy, which doubles the benefit, sometimes referred to as the “double indemnity rider.
A policy may offer an accidental death benefit rider in higher multiples of the policy face amount.