What are life insurance riders?
When you buy life insurance, you may be offered a variety of policy riders. We'll help you better understand what life insurance riders are, the most common types of riders, and the benefits they provide.
Key Takeaways
- Life insurance riders are optional add-ons that customize your policy with additional benefits, like how you'd add comprehensive coverage to an auto policy.
- Common life insurance riders include waiver of premium, accelerated death benefit, accidental death and dismemberment, long-term care, guaranteed insurability, and term conversion riders — each designed to cover specific life circumstances.
- Some riders allow you to access your life insurance benefits while still alive, such as the accelerated death benefit rider for terminal illness or the long-term care rider for chronic illness that prevents you from performing basic daily tasks.
- Rider availability and cost vary by policy type and insurer — some riders are included at no extra cost, while others increase your monthly premium, so always review the rules and restrictions before adding coverage.
What is a life insurance rider?
Life insurance riders are optional coverages you can add to your life insurance policy. Riders provide you with additional benefits to personalize your policy and give you more coverage.Like adding comprehensive to your auto policy, a life insurance rider lets you customize your policy to meet your needs.
What type of riders can typically be added to a life insurance policy?
Everyone's life insurance needs are different. That's why insurance companies offer a variety of life insurance riders.
The riders available depend on the type of life insurance policy you have and what your insurance company offers. We've gathered the most common types of popular life insurance policy riders offered by many insurance companies.
Waiver of premium riderIf you become ill or disabled and can't, this rider pays your life insurance premium while you recover. This can help you worry less about money and focus on getting better.
Accelerated death riderIf you're diagnosed with a terminal illness, this rider lets you access your life insurance insurance benefits while you're still alive. You may be able to use your benefits for any purpose like
- Medical treatments
- A vacation
- Paying for in-home or assisted living cars
If you die in an accident covered in your life insurance policy, an accidental death and dismemberment rider increases the payout of your life policy. In most cases, this rider doubles the amount of your policy. This rider can also pay a benefit if you lose a limb or become blind due to a covered accident.
Child term riderIf you want your child or children to have life insurance, this rider lets you add them to your policy without buying a separate policy.
Guaranteed insurability riderA guaranteed insurability rider lets you buy additional life insurance at a future date, without having to undergo a medical examination or answer any health-related questions. People generally buy this rider to ensure they have enough coverage for future life events like
- The birth/adoption of a child
- Marriage
- Buying a home
Lets say you have a 20-year term life insurance policy and you outlive your life insurance contract. This rider will refund some or all of your premium payments.
Long-term care riderThis rider lets you access your benefits while you're still alive, for long-term care, if you develop a chronic illness and can't perform basic tasks like
- Bathing
- Feeding yourself
- Getting dressed
- Using the toilet
These riders can pay some of your life insurance benefits while you're dealing with serious health issues like
- Alzheimer's
- Multiple sclerosis
- Cancer
- Heart attack
Examples of long-term care that can be covered are for
- Bathing
- Using the toilet
- Dressing yourself
This rider lets you change a term life insurance policy to a permanent life insurance plan at some point before your term policy expires.
Life insurance riders
Each life insurance policy is different, as are each state's laws regulating insurance policies. When considering a life insurance policy rider, be sure that you fully understand the rules, restrictions, benefits, and any costs associated with each before adding any additional coverages.
Remember, some riders only work with a particular type of life insurance policy. In addition, some life insurance riders have no cost while others will increase your monthly premium.
Written by Kathryn Messer
Kathryn Messer is an insurance and financial services copywriter with more than 25 years of hands on industry experience. A fully licensed P&C and Life & Health broker, she has worked as an independent agency owner, commercial risk manager, and financial and investment adviser. She holds CIC, CPCU, CFP, and LUTC designations. Her writing is grounded in real world knowledge of insurance operations, regulatory complexity, P&C claims, insurance technology, and sales—giving clients a true subject matter expert with no learning curve.