Life Insurance Riders

Question 1

Accelerated Benefits Rider

Answer 1

• Advances part of the death benefit while the insured is alive
• Death expected within 24 months
• Permanent confinement in a nursing home due to a chronic illness or catastrophic injury
• Reduces death benefit payable to beneficiary upon death of the insured
• Disclosures must be offered by the company as to the effect on benefits

Question 2

Other (Additional) Term Riders

Answer 2

• Provides convertible term for a spouse or immediate family member

Question 3

Term Rider on the Insured

Answer 3

• Insured adds term insurance to his/her policy
• If death occurs, both the term death benefit and the permanent death benefit is paid out
• Premium lower than a separate policy
• Expires at a certain age or number of years
• 3 Available
  
  1. Level
  2. Decreasing
  3. Increasing

Question 4

Accidental Death Benefit Rider

Answer 4

• Death due to accident
• Death must occur within 90 days of the accident
• Doubles or triples the face amount

Question 5

Accidental Death and Dismemberment Rider

Answer 5

• Pays the principal sum as if its an accidental death benefit rider
  
  1. Paid if death due to accident
  2. Within 90 days of the accident date
• Pays benefit if dismemberment occurs
  
  1. Severance of feet, arms legs or hands
  2. Loss of sight or hearing
  3. Paralysis
• Dismemberment pays 50 of principal
• If multiple dismemberments occur claim will pay 100% of principal sum

Question 6

Guaranteed Insurability Rider

Answer 6

• Allows you to add insurance up to a certain amount
• Available typically in intervals between age 25 and 40
• Life events like marriage, birth or adoption of a child
• No medical questions asked
• Cost based on the insured attained age

Question 7

Long Term Care Rider

Answer 7

• Either independent and will not affect death benefit or used as an advance of the death benefit while insured is living
• % of face amount each month
• May pay for home care, assisted living and nursing home care