Riders add coverage to your life insurance plan and, yes, you can add them to your final expense policy. Optional riders for final expense include accelerated death benefit, child rider, long-term care, term conversion, and waiver of premium.
What Final Expense is and What it Covers
What insurance policy are you adding these riders to? Understanding final expense riders starts with knowledge of final expense coverage.
The standard purpose and process for final expense centers around the death benefit. This is a sum of money that’s issued to your chosen beneficiaries once you, the policyholder, pass away. For final expense, the amount ranges anywhere from $2,000 to $50,000. Once you enroll, as long as you keep up with your monthly premium payments, you’re covered for life.
Riders You Can Add to Your Final Expense Policy
Insurance riders for final expense will affect your death benefit or your premium payments. Here are your options:
- Accelerated death benefit: Instead of waiting to issue your death benefit to your beneficiaries when you pass away, the accelerated death benefit rider lets you receive payments early while you’re living. To utilize this rider, you must have a critical or terminal illness that lowers your life expectancy to six months to two years.
- Child rider: You can purchase this rider for an additional death benefit to cover their funeral expenses should they pass away. This death benefit typically ranges from $5,000 to $25,000. You will likely have to fall within certain age ranges to qualify for this rider — most insurance companies require that you be between 18 and 65 years old, and your child between 15 days and 25 years old.
- Long-term care: Similar to the accelerated death benefit rider, the long-term care rider lets you use your death benefit early to cover your long-term care. You’re an ideal candidate for this rider if you receive daily care.
- Term conversion: Term conversion is a common rider, but it doesn’t apply to final expense. But, in case you hear about it and are curious as to what it is, term conversion lets you transition a non-permanent life insurance policy to a permanent one like final expense. This means that your coverage will last until you pass away without having to lapse or renew.
- Waiver of premium: With a waiver of premium rider, you can stop paying your monthly premiums but still receive coverage if you become critically ill, seriously injured, or disabled. That way, you can focus on your medical bills and still be covered for your end-of-life costs.
Prioritize Your Goals with Memorial
Memorial Insurance Group will make sure you have the riders and final expense policy you need to stay strong and secure for the future. To learn more, reach out to us today.