Types of Life Insurance Riders

Life Insurance Riders refer to the add-ons that a standard life insurance policy does not offer. A rider is a legal term that is used to show a change, amendment, or addition to a legal contract. Life Insurance Riders are features that are not present in a typical insurance policy. These may be beneficial for you in many terms. You will have to pay an extra cost for the added benefits you will receive. Let’s learn about some of the common types of Life Insurance Riders:

Waiving of Premium

Getting the premium waiver will waive off any cost of insurance if the policy owners suffer from a debilitating physical illness. Usually, a disabled person is unable to work; this results in a reduction in your income. Therefore, the person will try to reduce expenses. Life Insurance is also an expense; consequently, he/she will cut it first. If you opt for a premium waiver rider, this will keep the policy in force without paying the insurance company anything. However, this will only work till the person is disabled, or reaches the age of 60. One drawback of this is that the rider automatically ends as soon as the person retires. Moreover, this is one of the frequent riders people use as it is easily affordable.

Disability Income Rider

This type of rider explains that a person will be paid a certain amount if he/she gets disabled during the tenure of the insurance policy. If disability takes place, the person with the disability is given a fixed amount until retirement. This situation varies from company to company. However, this rider is expensive as compared to others.

Accidental Benefit Rider

This option provides you with an increased death benefit in case your death occurs by any incident, rather than illness. This situation is quite sudden. The rider also covers benefits for a loss of an appendage or limb etc. It is a gamble of what will be the cause of death. Moreover, it is costly.


It is better for you to buy any of the riders so that you can take of your initial expenses.  If you still need help understanding how insurance riders work, you can visit HealthIQ.com.