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Why are Riders Important in California Life Insurance?
Why are Riders Important in California Life Insurance?
Policy riders are important in California life insurance because they provide an opportunity for you to purchase extra coverage and protect interests excluded in the basic life insurance policy. Optional riders can be purchased according to your needs and have many benefits. For instance, it replaces the need for an additional life insurance policy. A rider attached to a life insurance policy also allows you to customize an already existing life insurance policy, helping you to save on costs.
11 Most Important Life Insurance Riders in California |
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| Guaranteed Insurability Rider | This rider guarantees the policyholder the option of purchasing additional life insurance coverage when the policy term expires without needing a medical examination. This type of rider is most beneficial when your health declines due to age |
| Accelerated Death Benefit Rider | This living benefit rider will enable you to access your death benefits before death when diagnosed with a terminal illness. With this rider, you will only be advanced a certain percentage of the death benefits, which will then be deducted from the overall death benefit amount paid to your beneficiary when you die |
| Waiver of Premium Rider also known as Disability Rider or Disability Waiver of Premium Rider. | With this rider, an insured will be permitted to stop payments of premiums if a mishap, injury, or a chronic health condition, included in the policy, occurs before the specified period, which is usually at a certain age. The payment of premiums will only be suspended until a period when the insured is able to resume payments. This rider can only waive premium payments entirely if the insured is completely disabled and/or has no income source |
| Accidental Death Rider | With this rider, additional coverage is activated if the insured dies by accident. If you are a breadwinner, this type of rider is a good option because it will typically pay twice the death benefit to your dependents if you die due to the accident. Accidental death rider is also known as a double indemnity rider |
| Family Income Rider | A family income rider guarantees a steady monthly income to your family for a specified period upon your demise |
| Long-Term Care Rider | Life insurance with long term rider provides monthly financial assistance if the insured stays at a nursing home or is receiving long-term care. Some insurance companies offer long-term care riders automatically alongside an insured’s life insurance policy, but you can also purchase it separately as a rider |
| Return of Premium Rider | This rider refunds the insured's premium if they outlive the policy term. As such, all your premium payments will be returned to you if the policy term ends before you die |
| Child Term Rider | A child term rider allows the insured to change a child's term life insurance policy to a permanent one when the child attains maturity without needing a medical examination. It also guarantees a death benefit payout if the child dies before a stipulated age |
| Chronic Care & Critical Care | This rider allows you as the policyholder to tap into your death benefits if you are diagnosed with a terminal illness or any other health issue that is included in the policy rider. |
Discuss life insurance riders and their applicability to your needs with a knowledgeable state-licensed life insurance agent who has access to multiple California life insurance companies and plan types.
