About Insurance Riders
When you purchase life insurance, you’ll have the chance to add on additional, smaller policies that cover specific circumstances. If you anticipate health issues down the road, for example, you may want to pick up a critical illness policy to help cover medical costs. If you have a family history of cancer, a cancer plan rider could prove worthwhile. If you work in an environment that could turn hazardous, you may want to pick up an accidental death and disability (AD&D) rider.
Accidental Death and Disability Riders
It sounds frivolous, but according to the U.S. Centers for Disease Control, as recently as 2016, accidents were the third-highest leading cause of death in the country, taking 161,374 lives. An accidental death rider can provide extra security to your beneficiary if the worst happens. Policy amounts differ, so be sure to talk with a licensed insurance Agent when exploring your options.
AD&D riders are subject to some limitations which are specific to each individual policy. Though the policy does not cover health-related death or injury, your health may limit the rider’s payout or increase its premiums. Age, vocation, and avocation can have a similar effect, especially once you reach 65 years old. And while it may seem like common sense, it bears pointing out: Going out and doing something really dangerous for fun may invalidate the rider if the worst happens.
Sources
- “What is an accidental death rider?” EverPlans.com
- “Accidental death benefit,” Investopedia
- “Is An Accidental Death Rider Right For You?” BestLiferates.org
- “Leading Causes of Death,” Centers for Disease Control
Categories: Accident Insurance, Life Insurance