You may not know this, but maintaining coverage on your present life insurance policy is equally important as having regular life insurance in the first place. Additional life insurance benefits is an example of an insurance rider. Insurance riders are vital as they are used to alter your life insurance coverage to make it fit your changing needs.
Policy Premiums Can Vary Greatly
As you may already know, insurance premiums vary significantly among insurance companies. Premiums could be as much as 50% more for the very same insurance coverage and the options provided. It is, therefore essential for you to do your research. Be sure to study the offers of several reputable companies if possible.
Life Insurance Riders
Before you think of purchasing a separate policy, you may be better off to make changes to your existing one. This is done by adding a life insurance rider. A rider can supplement your presently active life insurance policy by adding more coverage to the policy you already have. Conversely, it is essential to note that you can also use a rider to eliminate the coverage that is outlined by the insurance policy, reducing coverage or benefits.
When you add or remove coverage with a life insurance rider, your premiums will likely increase and or decrease as well. Because of this, you should be careful before you make a final decision. Whether you are adding or removing coverage, be sure to understand the effects it will have.
If you eliminate coverages or options that you don’t need, you’ll effectively be reducing costs. So if you’re interested in a very affordable insurance policy, this may be something you should consider.
Accidental death, waiver of premium, family income benefit, and guaranteed insurability are some of the insurance riders that are sometimes added or removed if allowed.
If you have questions regarding your existing insurance policies, be sure to give us a call. We would be happy to answer any questions you may have.