The different options that can be added to a life insurance policy vary widely. The common denominator, however, is that these options will cause the life insurance premium to increase. Many times it is money well spent.
One of the more well known options is the Waiver of Premium. What this does is allow premium payments to be waved during specific times, such as when the policy holder becomes incapacitated because of an illness or injury. Because the policy holder may not have the ability for earning money, this form of protection can end up being a real financial lifesaver, particularly since family members will be covered as well. Some insurance companies might specify the conditions, like becoming permanently or totally disabled, or the option may only take affect at a certain age.
Critical Illness Cover is another extra that is popular. If an individual becomes unable to work due to a critical illness like cancer, this option allows a portion of the maturity total to be issued as a lump sum. Or occasionally it might be distributed as regular payments that mirrors the former income. Each insurance policy will have its own list of the illnesses that are covered. If the patient does recover they will not be required to pay the money back. This option can be purchased alone or as part of endowment or whole life insurance.
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An Accidental Death Benefit option will provide a larger monetary amount (as much as 100% of regular benefits) to the policy holder’s beneficiaries in the event the policy holder dies accidentally. This option can be added onto a life insurance policy for children and spouses. For a fairly modest sum it can provide as much as a million dollars worth of additional coverage.
The Accelerated Death Benefits option allows the policy holder or their spouse to collect on benefits if the insured individual receives a terminal illness diagnosis. As an example, if an individual is given only a year or less to live, then they can receive up to fifty percent of their coverage. This amount will decrease the amount that their beneficiaries will receive when the insured dies.
The option for Permanent Total Disability provides an extra insurance benefit should the policy holder become permanently and totally disabled due to an illness or accident. Permanent is defined as a condition lasting a minimum of two continuous years where there does not appear to be any chance of improving or having the ability to return to work.
These extra life insurance options are only a small sample of what may be offered by life insurance companies to policy holders. These are normally referred to as Rider Benefits due to the fact that they ride alongside the main policy. Any comparisons of life insurance should include quotes from several different insurance companies. You should discuss your individual situation with experienced and qualified insurance professionals. Some life insurance companies may even include an option or two free of charge in order to make their insurance policies more competitive and attractive, which doesn’t mean these options are any less valueable.
Appropriate life insurance coverage for an individual and their family provides peace of mind and should be a top priority when planning your finances.
