WHAT IS A RIDER TO A LIFE INSURANCE POLICY?
A rider is an additional benefit – added onto – the life insurance policy. Think of the life insurance policy as the car, and now you’re adding on the extras I.E. heated seats, back up camera etc…
All riders come with a cost – most of the time very affordable and very worth it. This is a conversation to have with your Fortis Life Group agent. In this article we breakdown some of our favorite riders.
RETURN OF PREMIUM RIDER
The 20 and 30-year term policies we offer (upon underwriting and approval) have a return of premium rider.
EXAMPLE: You purchase a 20-year $500,000 life insurance policy for $30 a month. Over the course of 20 years that is a total of $7,200 total premium (grand scheme of things, not a lot of money). Let’s assume you don’t use the death benefit. At the end of the 20-year term, you get the entire premium back. Go for a nice weekend on the beach or something. It’s a win-win. Protection when you need it. Money back if you don’t use it.
CRITICAL OR CHRONIC ILLNESS RIDER
I have two life insurance policies, both have these.
If you are diagnosed with an approved illness — heart attack, stroke, terminal cancer etc.—you are allowed to receive money upfront. This is similar to (what’s known as) an accelerated death benefit. In other words, you don’t need to officially die to get some cash up front.
Riders to be Aware of
Term Conversion Riders – Allows you to convert a term policy to a permanent policy, most of the time without a need for further medical exams.
Family Insurance Riders
Add spouses or children to your policy.
And many more… As we always say at Fortis. Life insurance is not a once size fits all. Talk to an agent. We are independent and work on your behalf to find the right policy.