The 9 Most Useful Life Insurance Riders

[ktchester]

I have been looking at the Western Reserve Life with living benefits. Their premium is higher but it has the critical and chronic illness riders built in. They are not charged separately but as the premium for their term is higher there is a charge, just not optional.

I priced out ltc, critical illness, and a term policy and it was higher than the term with the living benefits. For example, I was going to get a 100k term policy which would give me access to up to 2% of the policy for chronic illness and up to 90% on critical. I understand that would decrease the death benefit so I was just going to take out more term, cheaper on another policy. Would this not be wise thinking? Please advise. Thanks.

 

[Cornelius]

Here's a great place to get some info on CI.. Something to consider is you get the coverage for specific purpose and if you use it for a CI will the need still be there?

Here's a site that has some great info:
Critical Illness Insurance - American Association for Critical Illness Insurance

 

[ktchester]

Thanks a lot. I will look into it.

 

[bobwise23]

Great list! This really puts the facts on Laymen's terms so even the unexperienced agents and consumers understand the differences and benefits.

 

[timcomp]

IMO, the only two riders she mentioned that generally have a charge and are worth buying are the wavier of premium and guaranteed insurability riders. The conversion rider and accelerated benefit rider are valuable, but are generally built into the policy. I see critical illness, accidental death and child riders of little value.

Could you please share your opinion on a chronic illness rider that accelerates the death benefit at no additional cost to the insured? The rider would define chronic illness as a permanent condition that prevents the insured from performing a set number of activities of daily living. Thanks.

 

[VolAgent]

Could you please share your opinion on a chronic illness rider that accelerates the death benefit at no additional cost to the insured? The rider would define chronic illness as a permanent condition that prevents the insured from performing a set number of activities of daily living. Thanks.

I don't see where that was mentioned in my previous post.

That said, if the rider is free to add to the policy, then add it. Always add free riders, no downside. The question as to how valuable it is depends on the cost to exercise it and how easy it is to use.

But trust me, everything has a cost. Actuaries can calculate the likelihood of just about any event and how much it will cost the company. Don't believe me? Then why does Ohio National sell their policy with a stripped down conversion feature for slightly less than the one with full conversion rights?

 

[jkapoor3]

Nice to see that people like you posting such a useful information.... its definitely helpful for the people who are not aware about it..... and you almost got every point covered... good work... keep it on...

 

[Ron Van D]

IMO, the only two riders she mentioned that generally have a charge and are worth buying are the wavier of premium and guaranteed insurability riders. The conversion rider and accelerated benefit rider are valuable, but are generally built into the policy. I see critical illness, accidental death and child riders of little value.

Why do you see child riders of little value? My 4 yr old nephew was killed. The insurance gave the parents time to grieve. My neighbor's son was diagnosed with juvenile diabetes. The rider provided guaranteed insurability. I know the argument about "What are the odds?", but the odds don't matter when it happens to your kid.

 

[LGilmore]

"Why do you see child riders of little value?"

I think you may be taking it the wrong way.....

I prefer an individual policy for a child actually for the reasons you state, especially GIO. You can do more for a child with an individual policy than a rider.

the rider in comparison is better than a poke in the eye with a sharp stick.

 

[VolAgent]

Why do you see child riders of little value? My 4 yr old nephew was killed. The insurance gave the parents time to grieve. My neighbor's son was diagnosed with juvenile diabetes. The rider provided guaranteed insurability. I know the argument about "What are the odds?", but the odds don't matter when it happens to your kid.

Exactly what LGilmore said. I have a separate policy on my son, not a rider off of mine.