Best Policy Riders
Adding additional riders to a life insurance policy can be a great way to help “customize” the coverage to better-fit current and/or future anticipated needs. Some of the most popular riders that we see added include Disability Income, Critical Illness, and Chronic Illness
When it comes to having the best policy riders, there was actually more than just one insurance company that we felt was best. One reason for this is because there is a long list of life insurance policy riders to choose from today. So, the best life insurance company for you in this area is likely to be the one that provides the policy “customization” option(s) that you need.
Our picks for the best life insurance companies for policy riders include (in no particular order):
Living Benefit Riders
What would a check for $25,000, or $50,000, or $100,000 mean to you if you were stricken with a heart attack, stroke, cancer or a severe illness? With a living benefit rider on your life insurance policy, receiving these funds could be a possibility.
A living benefits rider on a life insurance policy allows a policy owner to “accelerate” the payout of the policy’s death benefits. This will typically require that the insured is diagnosed with a particular health condition and/or needs assistance with basic daily living activities.
By being able to access the policy’s proceeds, the insured can use the funds for any number of needs, such as paying for medical expenses, travel costs to and from treatments, or any other item of their choosing.
Some carriers will allow you to accelerate and receive up to 95% of the death benefit amount. The premium may then be adjusted going forward so that you are paying for the remainder of the death benefit. And, upon death, the policy’s beneficiary will receive the amount of the death benefit that remains in the policy.
In the living benefit riders category, we chose Phoenix life. With this company, you may be able to accelerate up to 95% of the policy’s death benefit if you qualify based on any of the following:
Critical illness – This includes heart attack, stroke, cancer, kidney failure, major organ transplant, and/or ALS
Chronic illness – Chronic illness qualification means that you are unable to perform, without substantial assistance for at least 90 days, at least two of the following six activities of daily living: bathing, continence, dressing, eating, toileting, and / or transferring, or that you are diagnosed with severe cognitive impairment.
Terminal illness – This means that you are terminally ill, with a life expectancy of 12 months or less.