Insurance Rider

What does the waiver of premium rider do?

Waives premiums during total disability after a waiting period (typically 6 months, sometimes 90 days). The insured must become disabled before age 60 or 65. Premiums may be retroactively waived to the date of disability.

What is the payor benefit rider?

Used on juvenile policies — waives premiums if the parent/payor dies or becomes totally disabled before the child reaches a specified age (typically 21 or 25).

What is the Accidental Death Benefit (ADB/AD&D) rider?

Pays an additional death benefit (usually double — 'double indemnity') for death caused solely by an accident. Death must typically occur within 90 days of the accident. Does NOT pay for death from illness. Usually expires at age 65-70.

What is the Guaranteed Insurability Rider (GIO)?

Allows purchase of additional insurance at specified dates or events (marriage, birth of child) without evidence of insurability. Option dates typically every 3 years (ages 25, 28, 31, 34, 37, 40). Unused options are lost.

What is the Cost of Living Adjustment (COLA) rider?

Automatically increases the death benefit periodically to keep pace with inflation, usually tied to the Consumer Price Index (CPI). Premiums also increase correspondingly.

What is a term rider?

Adds term life insurance coverage to a permanent policy, providing additional temporary death protection at a lower cost. Often used to cover a spouse, children, or increase coverage during high-need years.

What is the other insureds (spouse/children) rider?

Provides term insurance coverage on family members under the primary insured's policy. Coverage for children typically covers all current and future children.

What is the family rider?

Provides term coverage for all eligible family members (spouse and children) under a single rider added to the primary insured's policy.

What is the return-of-premium rider?

A return-of-premium (ROP) rider is most commonly a term-life add-on that refunds some or all premiums paid if the insured outlives the policy term (i.e., the term expires without a death benefit being paid). This feature significantly increases the premium cost compared with standard term insurance.

What is the Accelerated Death Benefit (living benefit) rider?

Allows the policyowner to receive a portion of the death benefit while alive if diagnosed with terminal illness (12-24 months life expectancy), chronic illness (can't perform 2+ ADLs), or critical illness (heart attack, stroke, cancer).

How are accelerated death benefits for terminal illness taxed?

Under IRC §101(g), benefits for terminal illness are generally received income tax-free — treated as if paid by reason of death.

What is the Long-Term Care (LTC) rider?

Allows access to the death benefit for qualifying long-term care expenses when the insured cannot perform a specified number of Activities of Daily Living (ADLs) or has severe cognitive impairment. Payments reduce the death benefit.