Life policy riders

Match the rider to the need

A rider modifies a base life policy. Identify its trigger, the person covered, and the benefit changed. Definitions, waiting periods, ages, exclusions, and charges depend on the contract.

Protect premiums or provide income

Waiver of premium waives qualifying premiums after the insured meets the rider's total-disability definition and waiting period. Disability income pays an income benefit instead. Payor benefit, commonly attached to juvenile insurance, can waive premiums following the adult payor's qualifying death or disability for the specified period. The payor and the insured child are different people.

Add coverage or future purchase rights

Guaranteed insurability provides specified opportunities to purchase additional coverage without new evidence of insurability. Additional coverage still requires premiums, generally based on attained age. Accidental death benefit adds a benefit for covered accidental death, not death from illness. Accidental death and dismemberment can also pay scheduled benefits for specified accidental losses.

Term riders add temporary coverage on the primary insured, spouse, or children, depending on the rider. Return of premium provides a stated refund when its conditions are met, such as survival to a specified term's end; it is distinct from ordinary cash surrender value.

Advance an existing death benefit

An accelerated death benefit pays part of the death benefit during life following a qualifying event. It reduces the benefit remaining for beneficiaries. With no other adjustments, a $60,000 acceleration from $200,000 leaves $140,000. Charges or other adjustments can affect actual amounts.

California prohibits marketing accelerated death benefits governed by its accelerated benefit article as long-term care insurance. Advertising for an accelerated benefit attached to an existing term policy must state prominently that the benefit terminates with the policy. A life benefit requiring receipt of specified long-term care services is outside that article's accelerated-benefit definition. These are distinct categories, not interchangeable names. (Cal. Ins. Code §§ 10295(c), 10295.11(a)–(b).)

Use the diagram's three branches to organize the riders: protect premiums, add coverage or purchase rights, and advance death proceeds.