“Mom, I got a call the other day from our insurance agent,” said my now 20-year old daughter. “She wanted to talk to me about life insurance, but I didn’t know what to tell her.”
My bright young off-spring knows her father and I both carry life insurance policies and have paid premiums on policies for each of our kids. She also knows not to just purchase something without doing some research first. All life insurance policies are not created equal. My daughter had already decided on permanent life insurance, but wasn’t sure which riders she wanted to include.
As a Junior in college, she hadn’t even given a thought to possibly using her life insurance for retirement planning or as a living benefit. What young adult ever believes they will have a debilitating illness or accident? Depending on the policy she chooses, she can choose riders that allow her to provide for changes in her life over the lifetime of the policy.
Some of the benefit riders to choose from include:
- Accident Only Disability Rider – Pays a monthly income if the insured is injured in a covered accident.
- Accidental Death Benefit Rider – Payment of benefits when death is the result of an accident.
- Children’s Term Insurance Rider – Provides life insurance protection for minor children.
- Disability Waiver of Premium Rider – If the insured becomes disabled and can’t work, the premiums are waived .
- Monthly Disability Income Rider – A monthly income benefit for those who become disabled due to a covered accident or illness.
- Critical Illness Rider – Pays a benefit on diagnosis of cancer, heart attack or stroke.
- Return of Premium Rider – Allows the insured to recoup all of the premiums paid into a life insurance policy to help supplement retirement income or meet other financial goals.
- Protected Insurability Rider – Makes it possible to add insurance later in life, regardless of health.
- Value Enhancement Rider – Another flexibility option that allows for adding to the total death benefit and cash value later.
There are a few other riders, too. Knowing which riders you need, and which life insurance policy is the best for your circumstances is something best discussed with an adviser from AC Financial Group. Call (800) 564-3136.
