Life Insurance Riders: Living Benefits

July 10, 2019

Did you know that you have the option to customize your life insurance? These add-ons are called life insurance riders, and they can help you prepare for unexpected events that may arise while you are still alive.

Whether you currently have life insurance or you’re still shopping around, selecting the best riders for your needs can be tricky – but we are here to help! In this article, the first in our series on life insurance riders, we are taking a closer look at living benefits riders .

What are living benefits riders?

Often referred to as accelerated benefit riders, living benefits riders provide you with financial protection while you are alive. With living benefits riders, you can access funds from your life insurance policy to cover the costs of your mortgage, medical treatments, etc. while you are healing from an injury, diagnosed with an illness, or facing a short term disability.

Read on to learn more about the types of living benefits riders that you can add on to your policy.

Critical illness rider

Critical illness riders are one of the more popular options: these riders pay benefits to cover medical treatments for certain illnesses/health events, including cancer, stroke, kidney failure or heart attack. If you were to become diagnosed with a critical illness or experience a qualifying health event such as heart attack, your carrier would provide a lump sum of money from the death benefit in your policy (the money that is usually given to your beneficiary after you die).

Since none of us know what the future holds, this coverage can provide some financial protection for you and your loved ones if you were to experience a health crisis.

Accelerated death benefit rider (terminal illness)

The accelerated death benefit rider provides financial protection if you were to become diagnosed with a terminal illness. This rider is more specific than critical illness – it is tailored toward end-of-life coverage. If you are diagnosed with a condition and only have a year to live, this policy will give you the money from the death benefit of your policy to cover medical costs, hospice care and more.

You can use these funds for anything you choose, and the payout can be tax-free (depending on your insurance carrier).

Chronic illness rider

A chronic illness rider can provide financial support in the event you are unable to perform at least two of the six basic activities for daily living, cited by Senior Living as mobility, personal hygiene, bathing, toileting, dressing and self-feeding. Once a medical professional certifies that your disability is permanent, you will begin to receive the accelerated benefit payout.

Long-term care rider

Like the chronic illness rider, long-term care provides a payout if you become unable to perform two of the six basic daily activities and you need long-term care. These riders are generally more difficult to qualify for – you’ll need to go through more underwriting and your premiums will likely be higher than with other riders. But, if your long-term care expenses exceed the value of your death benefit payout, your carrier might continue paying for your care until you die.

Waiver of premium rider

The waiver of premium rider allows you to skip premium payments if you get seriously injured or become disabled and cannot work. As long as you’ve paid your premiums on time during the life of your policy and your disability is documented by a medical professional, you’ll be able to waive premium payments for a predetermined amount of time.

Living benefits riders can support your loved ones

That wraps up part one of our life insurance rider series. While living benefits riders can increase your monthly premium, they provide extra benefits to your life insurance that can help you get the most out of your coverage.

If you are interested in adding one of these riders to your current coverage, your Symmetry Agent can help you determine the best riders for your budget and lifestyle.

And if you are interested in getting life insurance coverage, all you need to do is fill out our quick and easy form to request a quote and we will connect you with a Symmetry Financial Group Agent who can help you choose the best life insurance and riders for your needs. Let’s get started!


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