Insurance Riders

Question 0

Waiver of Premium

Answer 0

waives the premium if the insured becomes totally disabled after a waiting period.

Question 1

Disability Income

Answer 1

If the insured becomes totally disabled, they receive monthly disability income benefits after the waiting or elimination period.

Question 2

Accidental Death (Double Indemnity)

Answer 2

If insured dies as a result of an accident (within a certain time period following the accident) the policy will pay double the face amount to beneficiary.

Question 3

Cost of Living

Answer 3

Face amount or death benefit will be adjusted each year by the rate of inflation.

Question 4

Living Need (Living Benefits)

Answer 4

Accelerated benefits rider - Allows a policy owner to receive a portion of the policy’s death benefit in the occurrence of a critical or terminal illness. Reduces future death benefits to beneficiary.

Question 5

Guaranteed Insurability Rider

Answer 5

Guarantees the ability of the insured to purchase additional life insurance in the future without having to purchase another Life Insurance policy and without furnishing proof of insurability.

Question 6

Long-Term Care

Answer 6

Pays for care in the case of an insured inability to perform activities of daily living (dressing, eating, regardless of age). Either through custodial nursing care or home based care.

Comprehensive Long-Term Care covers both home based or Nursing Home care.

Question 7

Annuity Riders

Answer 7

Provides policyholder with living benefits at retirement. The insured can withdraw from the funds available in the annuity rider and still keep the life insurance in force.

Question 8

No Lapse Guarantee Rider

Answer 8

Automatic Premium Loan - Keeps the policy from lapsing through negligence of premium payment by borrowing against the policy to pay the premium. (not available in a Term Insurance since there is no cash value)