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There are often many different options, also called rider benefits that you can add to your life insurance policy. Although they will end up costing you more, they may be worth purchasing. We’re going to discuss some of the common options so you can decide if you want to add them to your existing life insurance policy.
Accidental Death Benefit This option will provide up to 100 percent of your regular benefits to your beneficiaries if you die as a result of an accident. For a relatively low premium, you can obtain as much as one million dollars worth of coverage, above your regular insurance benefits. Most insurance companies allow policy holders to add an accidental death benefit to life insurance policies for their children or spouse. Accelerated Death Benefits These benefits enable you or your insured spouse to collect benefits if you contract a terminal illness. If you have less than one year to live, you may be able to collect as much as 50 percent of your coverage. However, the amount you collect will be deducted from the total payable to your beneficiaries when you die. Critical Illness Cover This popular option enables you to collect part of your maturity amount in a lump sum if you can no longer work because of a serious illness like cancer. Sometimes, you will receive the money as a regular payment to replace your lost income. The list of covered illnesses will vary depending on your particular insurance policy, but you don’t have to pay any of the money back if you eventually recover from the illness. Critical illness cover can be purchased separately or with whole life, endowment or term life insurance. Permanent Total Disability This option will give you extra insurance benefits if you suffer a permanent disability caused by an illness or an accident. The term “permanent” refers to a condition that lasts a minimum of two consecutive years, and where there is very little hope of you being able to resume working or improving. Waiver of Premium This is one of the most common riders available, and it enables you to waive your premium payments for a certain time period if you become incapacitated after suffering an illness or injury. Many policy holders choose this option because it can protect you and your family members financially if you can no longer earn an income. You should check with your insurance company about the waiver of premium option; certain insurers require that you reach a certain age before being entitled to waive your premiums, while others specify that you must be either permanently or totally disabled. There are many other options available when you purchase life insurance. Make sure to discuss them when you purchase your policy. In fact, many insurance companies will offer you one or two options free of charge to entice you to purchase their insurance policy. This is becoming more common, given the competitive aspect of the insurance industry. Therefore, you may be able to save some money and gain additional coverage without spending an extra cent. |
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