A Complete Overview of Life Insurance Riders

Insurance policies generally offer a basic level of coverage with basic conditions, restrictions, and requirements. Insurance riders are additional provisions added to contracts, usually at a cost, that customize a standard policy so that the policy you purchase better meets your needs.

Reasons for purchasing insurance riders

Most insurance policies have standard benefits, riders can help you personalize your policy. By opting to attach riders you can modify your policy to meet your particular insurance needs.

Without attaching riders to your policy, you might have to purchase separate policies to give you the specific types of coverage you need. Insurance riders can provide coverage in a range of areas, without requiring the purchase of separate dedicated policies, which can be very expensive. If the policy you're purchasing doesn't meet all your insurance needs, attaching riders can be a cost-effective way to get the coverage you need.

Cost

While the cost of insurance riders can add up, depending on how many riders are attached to a policy, it’s a good idea to compare the cost of the policy with riders to the cost of purchasing separate, dedicated policies to achieve the coverage you require. Quite often, the cost of purchasing riders is significantly less than the cost of purchasing multiple dedicated policies.

Types of insurance riders

Common types of insurance riders include:

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