Needing to take time off of work for injury or disability is more common than you might think. In fact, around 30% of Americans are forced to take some kind of disability leave during their working life, which can be a huge financial strain on their family. But did you know that your life insurance policy can also protect your family and finances in the event that you become disabled and are unable to work? Standard life insurance policies don’t cover disability, but many people are unaware that you can add what is known as a disability rider to a policy. One of these riders will give you added peace of mind, but there are few things that you should know about them.
What Is A Rider?
A standard life insurance policy will not cover all eventualities, but there is a way to extend your policy or to make your terms and conditions more flexible: you can add what is known as a rider to your policy. These optional additions cost extra, but give you benefits that fill the gaps of standard life insurance, and include things like extra coverage for accidental death or coverage for your income so your family doesn’t have to struggle in the event of your death.
What Is A Disability Rider?
An injury or disability can mean an extended period of time during which you are unable to work, as well as worries about how to take care of your family and finances. In order to protect you and your family in the event that this happens to you, you can choose to purchase a disability rider along with your life insurance policy. There are multiple types that you can choose from, or you can purchase multiple riders and combine them. Some of the most common ones include:
- Disability income rider – Essentially, this type of rider allows your life insurance policy to also function as disability insurance: you will be provided with a monthly stipend in the event that you can no longer work. Many insurance companies will pay out 1% of the coverage amount of the insurance policy to help replace your income.
- Waiver of Premium rider – Having this type of rider means you will not have to pay your life insurance premiums after you’ve been disabled and unable to work for 6 months (some insurance companies will also reimburse you for payments made during that 6-month period). With this rider, you’ll be able to focus on your healthcare expenses, and won’t have to worry about losing your life insurance coverage.
- Presumptive total disability– If you have one of these riders, your insurance company will immediately pay out your full benefits if you lose sight in both eyes, your hearing, your speech, or the use of at least two limbs, whether you are working or not. With this rider, there is no period of time that you have to be disabled before you begin receiving your benefits.
If you want to add a disability rider to a life insurance policy, you should know:
- You cannot purchase a disability rider if you are over the age of 65.
- You cannot purchase a disability rider if you have pre-existing conditions.
- There is a waiting period of up to 6 months before the waiver kicks in.
Do You Need A Disability Rider?
If you are deciding whether a disability rider is right for you, you should consider what kind of job you have, and how much you and your family rely on your income. For example, if you have a high-risk job where there is a higher likelihood of injury, a disability rider will be very beneficial to you, and will give you peace of mind knowing that you’ll be prepared in the face of the unexpected. In addition, one of these riders could be perfect for you if you are the sole breadwinner of your family.
When looking into a disability rider, you’ll find that they differ between life insurance companies: some insurance companies have different definitions of disability, as well as different coverage options for these riders. Before purchasing a life insurance policy with a disability rider, you should compare plans from different companies to find the one that suits you and your family’s needs best. To do this, consider using online tools, or speaking with an agent. We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.