An insurance rider does not exist as its own separate policy, rather, as the name suggests, it is added to an already-existing policy in order to amend the existing policy in some way. The amendment does not necessarily mean that it is adding coverage to the policy. In fact, you can get an insurance rider that reduces your coverage and your payment. Consumers can obtain insurance riders for car, house, and life insurance. Here are some things to consider before adding a rider to your existing policy.
1. Auto insurance riders
Common insurance riders for auto insurance policies include adding rental reimbursement, towing and roadside assistance. If you find that your current towing provider is too expensive, you may consider this rider as a way to save money and to feel safer on the road. Often, families who will be traveling a lot for an extended period of time or even for a short vacation will add the towing rider to their car insurance.
2. Health insurance riders
Maternity care is one of the biggest insurance riders that consumers take advantage of. Likewise, if you anticipate extra dental care needs or vision needs, dental and vision riders may be added to your already existing policy. If you have maternity care included in your insurance and no longer require it, you can get an insurance rider that reduces your payment and removes the added service.
3. Life insurance riders
Employees who get a new, physically challenging or dangerous job often add a life insurance rider that will cover accidental death. On the flip side, you may also wave a premium or family income benefit as an insurance rider. Adding extra life insurance for unlikely events, however, is something that consumers should avoid. Make sure to think it through and make educated decisions. The most popular life insurance riders include,
This rider usually doubles the amount of the death benefit.
This rider waives the requirement to pay the premium in event of the policyholder getting disabled.
This rider allows the insured to collect a portion of their policy before they die.
This rider insures that the policy will definitely be renewed when it’s up.
This rider pays out a continuous monthly payment to beneficiaries in case of the policyholder’s death.
Insurance riders can be a very cost-effective way of improving your benefits or getting rid of services that you don’t use. From the simple addition of towing packages to auto insurance to the amendment to a life insurance policy, an insurance rider can help you to take care of your family. Before making the decision to add a rider to your insurance policy, make sure to read the fine print and do the math. It’s impossible to tell the future and what you’ll need in the future, but you can make educated guesses on your needs and on your budget.
Jean Gregory is a blogger who writes for AskForInsurance.com – an insurance questions and answers website where you can learn about topics such as endowment life insurance policy.
