Recently, your life changed for the better. You and your spouse welcomed a beautiful baby into your home. Since this joyous occasion, you’ve attempted to do everything in your power to provide your newborn with a happy and healthy home. Because you want to plan for your little one’s future, investing in life insurance sooner rather than later has become a top priority. If you can relate to this scenario, consider adding the following important riders to your new life insurance policy.
If you’re a financial provider for a spouse or kids, obtaining a disability income rider is smart. This rider will provide you with a specified amount of money every month if you become disabled. Some disability revenue riders only pay you money for a given period of time while others benefit you for the entire length of your disability. When studying the details of various disability income riders, determine whether they will pay you money in the event of an accident, an illness, or both.
A term life policy will only protect you for a specified period of time. For instance, your term life policy might cover you for 10 or 20 years. When you purchase a permanent life policy, your loved ones will receive a cash amount regardless of when you die. A term conversion rider allows you to convert a term insurance policy to a permanent one without obtaining a medical exam.
Accidental Death Benefit
If your death results from an accident, an accidental death benefit rider will provide your beneficiary or beneficiaries with more money than your insurance policy’s stated death benefit. If the additional funds equal the regular death benefit, this kind of rider is referred to as double indemnity.
Return of Premium
If you’re young, you might feel investing in life insurance isn’t in your best interests. You may believe you would be spending your hard earned money on something you don’t need at this time. If you think this way, obtaining a life insurance policy with a return of premium rider might appeal to you. A return of premium rider allows you to get the money you pay for insurance back if you outlive the term of your policy.
Due to your stage in life, you might not feel you need much life insurance at this time. However, you may foresee a later date when you’ll want more life insurance coverage. A guaranteed insurability rider allows you to purchase additional life insurance benefits at specified future dates without submitting medical information to the insurance company. This rider will only give you the opportunity to buy additional coverage until you reach a predetermined age such as 40.
Life is uncertain. If people depend on you financially, acquiring life insurance is one of the smartest things you can do. When customizing your life insurance policy, think about including one or more of the aforementioned riders. Don’t hesitate to contact us for more information or advice.
Sources: AOL and Fox Business
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