Life Insurance Riders | Quotacy Ask an Agent - YouTube

Welcome to Quotacy's Ask an Agent series.

I’m Natasha and I work at Quotacy, which is a life  insurance broker. We help you get life insurance.

In this series, I talk to our agents about certain  topics we think you should know more about,

or things you ask to know more about. This week I talked to Renee Soltis.

Renee is one of Quotacy’s senior life insurance  agents and licensed for all 50 states.

Renee and I discussed what a rider is  and which are most important to consider.

She explained that a life insurance  rider is an optional benefit you can

add onto your base life insurance policy.  Most riders do require an extra cost that

is simply added onto your policy’s premium. Renee wanted to make sure people know that

most policies sold through Quotacy include an  accelerated death benefit rider at no charge.

If you’re given 12 months or less to live by a  doctor, an accelerated death benefit rider gives

you the option to reach into your policy’s  death benefit and use this cash yourself.

Typically, a life insurance policy is  beneficial mainly for the survivors.

Upon your death, your beneficiaries receive  a death benefit check. But with this rider,

you have access to a large amount of money  to use during the short time you have left.

This rider is free and Quotacy agents make  sure the carriers add it, when available,

onto our client’s policy without the  client needing to ask the carrier to do it.

Renee says a child rider is an  important rider to be informed about.

Regardless of how many children you  currently have or will have in the future,

a child rider insures each child for a  specific amount at the cost of one rider.

So, let’s say you have one child.  And you buy a life insurance policy

and add a $10,000 child rider  that costs $5 extra each month.

The following year, you decide to have  another child. That child is also now

covered with $10,000. But you’re  still only paying $5 per month.

The maximum amount of child rider coverage  available varies by insurance company, but,

$10,000 or $25,000 in coverage is the most common. A child rider typically costs $50-70 annually. If

you pay your policy premiums monthly or quarterly,  the rider cost will be divided to seamlessly fit

into your normal mode of payment. No need  to worry about a separate annual bill.

If both parents want to add a child  rider onto their individual policies,

Renee suggests applying to two different  insurance companies if you both plan on

buying the maximum amount of rider coverage.  Your Quotacy agent can help in this situation.

Understandably, parents don’t like thinking  about the possibility of a child dying.

But, should the worst occur, this rider can  take care of the cost of a funeral so it’s

one less thing for a parent to worry about. Renee noted that most child riders do come with

some underwriting. And some carriers may exclude  child rider coverage in certain situations.

If you’re unsure that your  child will qualify for coverage,

talk to a Quotacy agent directly. They’ll  make sure you’re applying to a carrier

that will be more inclined to  approve your child’s coverage.

The next rider Renee thinks is important  to share is a waiver of premium rider.

If you work in a hazardous occupation  or participate in risky hobbies,

a waiver of premium rider  is something to consider.

If you become disabled and have a waiver of  premium rider, the insurance company will cover

the cost of your life insurance policy so you  don’t need to worry about paying the premiums.

Using the waiver of premium rider benefits  does not impact your policy’s death benefit.

For example, let’s say you have a  policy with a death benefit of $500,000

and the waiver of premium rider. You’re  disabled and out of work for a year.

The insurance company covers your premiums for 12  months and your death benefit stays at $500,000.

The premiums are not taken out of that amount  nor do you have to pay back the premiums.

If you’re disabled and can’t work, one of the  expenses that unfortunately often gets canceled

is the life insurance policy. A life  insurance policy is so important for

families, so the waiver of premium  rider can be extremely valuable.

The cost of a waiver of premium rider  will vary based on your risk factors.

If you’re interested, your Quotacy agent  will talk you through how much it will cost.

The last rider Renee wanted to discuss  was the accidental death benefit rider.

An accidental death benefit rider pays  an additional death benefit amount on top

of your base policy’s death benefit if  you died as a result of an accident.

So, for example, let’s say you have a $500,000  policy and added a $100,000 accidental death

benefit rider. If you die from pneumonia while  your policy is active, your beneficiaries are

paid $500,000. If you die in a car accident,  your beneficiaries are paid $600,000.

Renee does not think this rider is  all that beneficial for most people.

In general, she doesn’t like the way this rider  is marketed. Because there are policies called

Accidental Death and Dismemberment  Insurance Policies that only pay out

as a result of an accident, many clients come to  us thinking that their traditional term policy

doesn’t cover accidental death. This. Is. Not. The. Case.

Your term life insurance policy covers deaths  that are a result of illness and accidents. You

don’t need the accidental death benefit rider to  make sure you’re covered by an accidental death.

An accidental death benefit rider can  be beneficial for those that work in

at-risk occupations, but, due to the low cost  of a term policy and the fact that your term

policy does cover accidental deaths, she doesn’t  think the added cost of this rider is worth it.

However, if you’re dead set on  making sure your beneficiary

gets an extra payout if  you die due to an accident,

Renee and any other of our Quotacy agents are  happy to help you get this rider added on.

When you apply for a life insurance policy, you  can add on a rider during the process. Most riders

cannot be added after a policy is placed inforce. Not everyone can qualify for every type of rider.

It’s possible that you’re approved for your  life insurance policy, but not the rider.

When you apply online through Quotacy, you’ll  be able to see what riders are available with

the policy you’re interested in.

You'll get another opportunity to see riders available when you sign what's called a Docusign

to officially submit your application to your chosen insurance company.

And, of course, you can always ask your Quotacy

agent directly which riders are available. Even  after you submit your application. Your agent

is happy to add on riders last minute as long  as the policy hasn’t yet been placed inforce.

While you can’t add on most riders after a policy  has been activated, you can drop riders later on

if you decide you no longer want it. Dropping a rider will not impact your

death benefit, but your premium will  reduce by however much the rider cost.

Have any questions you’d like to ask a life  insurance agent? Leave a comment below.

Ready to get life insurance quotes, check out  Quotacy.com. We’re here to help you find the best

deal on the life insurance you want. Bye!

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