5 Policy Options for Life Insurance You May Not Know About

For those familiar with life insurance, we typically talk about life insurance like it is a single, simple transaction – you pay a premium, and the insurance company pays you your benefits if you pass away.

However, life insurance policies are more complex than that, which is one of the reasons it helps to consult with an insurance agency like Kaia Insurance Group. There are many ways to enhance or alter your policy (or keep it simple, if needed), and knowing these different options, riders, and other benefits can help make sure that you have a policy that is right for you.

For example:

1. Waiver of Premium Benefit

The waiver of premium benefit is an option that can be added to a life insurance policy to provide financial relief in case the policyholder becomes disabled and unable to work. This benefit ensures that the life insurance policy remains active even if the policyholder cannot make premium payments due to a qualifying disability.

Many people should consider a waiver of premium benefit if it fits in with their finances, as the last thing anyone wants is for their benefits to lapse because they were unable to make payments due to disability.

2. Accelerated Death Benefit

The accelerated death benefit option allows policyholders to access a portion of their death benefit while still alive if they are diagnosed with a terminal illness. Benefits of this option include:

  • Early Payout – Access part of the death benefit upon terminal illness diagnosis.
  • Medical Expense Coverage – Helps pay for treatment and care costs.
  • Financial Support – Provides funds for end-of-life planning and expenses.

Life insurance is a great tool, but the payout only comes after someone passes, and the expenses a person may have can add up considerably in the days and weeks leading up to the passing. With an accelerated death benefit, it becomes a bit easier for those in ill health to have access to funds that may help.

3. Guaranteed Insurability Rider

The guaranteed insurability rider allows policyholders to purchase additional coverage at specified intervals without undergoing a medical exam. This option is particularly beneficial for those who anticipate changes in their life circumstances, such as marriage or the birth of a child, and want to make sure that they can safely increase their coverage even if their health changes in the interim.

4. Child Term Rider

The child term rider provides life insurance coverage for the policyholder’s children. This rider can offer financial protection in the unfortunate event of a child’s death and can be converted to a permanent policy when the child reaches adulthood. This rider can be a great addition to many policies, but don’t forget ask about whole life insurance and other, similar options, which may be better for your financial situation.

5. Accidental Death Benefit Rider

The accidental death benefit rider provides an additional payout if the policyholder’s death results from an accident. This rider can significantly increase the death benefit, providing extra financial security for the policyholder’s beneficiaries.

Enhancing Life Insurance Policies with Riders

Adding these policy options and riders to your life insurance policy can provide comprehensive coverage tailored to your unique needs. However, they can also alter the policy premium, the terms, and more, so it is important to always consult with an experienced independent insurance agent to make sure you’re getting the correct policy for your needs.

Based on the Houston and Conroe area, Kaia Insurance Group provides life insurance for all of Texas. For more information, please contact our team today.

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