Insurance Riders

Insurance Riders are sold in conjunction with an insurance policy and they modify the policy. Riders are also sometimes called Endorsements. If the Rider conflicts with the Insurance policy, the Rider overrides the policy.

Riders usually add more coverage, but they can also remove coverage. If they remove coverage, they may lower the premium.

Common Riders Found In Life Insurance Policies

Multiple Indemnity Rider (Accidental Death and Dismemberment) - Sometimes called A D & D Rider. The insurance company will pay multiple of the policy face value if the insured dies or suffers multiple dismemberment (loss of limbs or sight) from an accident within a specified time frame after the accident occurs, usually ninety days.

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Common examples are double indemnity, which pays an equal amount to the face value of the policy and hence, if the insured person dies in an accident, the beneficiary receives the policy face value and the Rider face value, which is twice as much as the original amount. Other example would be triple indemnity, ect.

This Rider does not cover suicide or death by illegal activities, such as committing a felony or accidents that were a direct cause of a body malfunction, such as a heart attack that immediately preceeds an accident. Accidental death is considered death by a sudden fortuitous event that is external to the body. Accidents must be unforeseen by the insured.

Accidental Death & Dismemberment also covers the loss of limbs or sight. For accidental loss of one limb or one eye, the insured individual would recieve one half of the benefit. Accidental loss of two or more limbs, or loss of sight in both eyes, results in the entire death benefit being paid. In this event, the A D & D Rider would be terminated.

Waiver of Premium Riders

Company pays for the insured if he or she becomes totally and permanently disabled and goes through a waiting period, also known as an "elimination" period. The waiting period is usually six minths. The company will pay the policy premiums to a stated date or to a stated age given in the Rider; the Rider also pays the retroactive premium paid. The insured must be under the care of a doctor to receive the waiver of premium benefits.