When shopping for life insurance, you will encounter various riders (add-ons) that can customize your policy. Some riders are valuable, while others may not be worth the extra cost. Let us break down the most common life insurance riders so you can make informed decisions.
What Is a Life Insurance Rider?
A rider is an optional add-on to your base life insurance policy that provides additional benefits or features. Riders typically cost extra, though some come at no additional charge.
Compare policies with different rider options.
Essential Riders Worth Considering
1. Waiver of Premium Rider
What it does: If you become disabled and cannot work, this rider waives your life insurance premiums while keeping your coverage in force.
How it works: Must be totally disabled, usually requires 6-month waiting period, company pays your premiums for the duration of disability.
Worth it? Yes, for most people. This is one of the most valuable riders.
2. Accelerated Death Benefit Rider
What it does: Allows you to access part of your death benefit early if diagnosed with a terminal illness.
Cost: Often included at no extra charge
Worth it? Yes, especially if free. Provides flexibility during difficult times.
3. Guaranteed Insurability Rider
What it does: Allows you to buy additional coverage at specific times without a medical exam.
Worth it? Yes, if you are young and expect your insurance needs to grow.
4. Conversion Rider
What it does: Allows you to convert your term policy to permanent coverage without a medical exam.
Worth it? Extremely valuable. Always choose a policy with conversion rights.
Family Protection Riders
5. Child Term Rider
What it does: Provides coverage on your children.
Worth it? Optional. Consider if you want coverage for funeral expenses and peace of mind.
6. Critical Illness Rider
What it does: Pays a lump sum if you are diagnosed with a covered critical illness like cancer, heart attack, or stroke.
Worth it? Maybe. Consider if you lack good health insurance or want extra financial protection.
7. Return of Premium Rider
Returns all premiums paid if you outlive the term. Worth it? Rarely.
The Mortgage Protection Alternative: Riders Built In
Mortgage Protection Insurance often includes features as standard benefits that term life charges extra for as riders. If you are interested specifically in MPI, MoProInsure.com focuses on protecting families with mortgage protection insurance (they do not sell term life, whole life, or other insurance types). What is typically included in MPI at no extra cost: Accelerated Death Benefit, Chronic Illness Coverage, and often Waiver of Premium. Plus, no physical exam required.
What it does: Returns all premiums paid if you outlive the term.
Worth it? Rarely. You are better off buying regular term and investing the difference.
How to Decide Which Riders You Need
Get expert guidance on rider selection. Ask yourself: Does this rider address a real concern? Can I afford the extra cost? Is the benefit worth the cost?
Recommended Riders for Most People
- Waiver of Premium: Essential protection
- Accelerated Death Benefit: Usually free, very valuable
- Conversion Option: Always include this
- Guaranteed Insurability: If you are young and expect life changes
Related Resources
MoProInsure.com offers free consultations with licensed specialists who can explain rider options, help you understand costs and benefits, and recommend the right combination for your needs.
Remember: The goal is comprehensive protection at an affordable price. Start with solid base coverage, then add only the riders that provide genuine value for your specific situation.