What is "rider" in Life Insurance? My insurance has one for terminal illness, is that good?

Question

Do we need riders or is it just pressed by companies to reduce our benefits?

Answer 1

A rider is an endorsement to a life insurance policy that either adds additional coverage or limit's the life insurance company's liability for payment of benefits under certain conditions.

Riders can provide more coverage to you, or reduce your coverage in certain situations.

A terminal illness rider provides a portion of the life insurance policy death benefit paid to the insured upon the insured being diagnosed as having a terminal illness that will result in death within one year.

Basically, if you find out you are dying (are expected to die within one year) due to a terminal illness, you can get part of your life insurance policy death benefit paid to you before you die.

This can help you pay for medical expenses, and other things you may want to do before you die.

This may be a good rider to have on your policy, if you feel the specific cost associated with this rider is a good value for you.

You want to find out exactly how much you are paying per year for this rider, and how much you will receive if you are found to have a terminal illness.

You may find it's a good value. On the other hand, you may feel this is something you can live without having on your life insurance policy.

many times riders offer additional coverage that very few people ever benefit from having on their policy.

I hope that helps you. Best of luck to you.

Answer 2

Insurance Rider Definition

Answer 3

I'm an insurance agent and, No you do not need a rider. Riders are added at a discount and are a policy that you can not get with that company by itself.
You need to decide if the rider that is being offer is something that you feel you want and may need.
When you look at the chances of how you will die, it is either going to be from a accident or an illness. You need to decide if the payout is going to be worth what you will be paying in premiums.

Answer 4

This Site Might Help You.

RE:
What is "rider" in Life Insurance? My insurance has one for terminal illness, is that good?
Do we need riders or is it just pressed by companies to reduce our benefits?

Answer 5

A rider just means "change" from the basic policy form. Your beneficiary clause, is a "rider". If you change your address, it's on a "rider". It doesn't have to limit or enhance coverage, but it can.

Whether or not your terminal illness rider is good or bad, depends on what it does. Impossible for someone else to make that call, without reading the actual rider.

Answer 6

I believe a rider is something that is added to your policy. Coverage for something that wouldn't normally appear on your policy.

Answer 7

It's bad

Answer 8

Was asking myself the same thing