How to Customize Your Level Term Life Insurance Policy
Riders, or add-ons that give additional benefits, can be added to standard term life insurance contracts. Because not all riders are cost effective, it’s a good idea to consult with a non-commissioned agent to see if you need them.
Term conversion rider: Allows you to convert an existing term life insurance policy into a permanent life insurance policy. Many standard term policies include this benefit at no extra cost.
Accelerated death benefit rider: If you are diagnosed with a life-limiting condition, you can request a portion of your death benefit early. The expedited death benefit rider is included at no extra cost with many term plans.
Guaranteed renewability clause: This clause allows you to renew your life insurance policy until a particular age, regardless of health changes. Many level term policies include this as well, but premiums will typically rise each year your policy is renewed after the initial term.
Waiver of Premium: This provision states that if the insured is disabled and unable to work for more than six months, the premiums for life insurance are waived. For full protection, it is usually more cost effective to look into a separate disability coverage.
Child Rider: Allows you to extend your policy to include protection for your child. Typical coverage amounts range between $5,000 and $20,000.
Working with an independent broker who can help you select the proper sort of policy and add-ons for your specific needs is the best approach to tailor your level term life insurance. Our brokers at Policygenius are licensed in all 50 states and can assist you through the full life insurance purchasing process while providing clear, unbiased advice.