02 Dec What Is a Veterans Life Insurance Rider? Different Types Explained
There is never a “one-size-fits-all” when it comes to life insurance. From time to time, your basic life insurance coverage can fall short of your special needs. However, with life insurance riders, you can customize your primary policy and receive benefits you won’t be able to acquire otherwise.
Generally, these riders are available at a lower premium because they require almost no-to-little underwriting. By paying a small premium, you can upgrade your standard life insurance policy to something that suits your needs.
What Is a Life Insurance Rider?
Veterans life insurance riders are additional benefits one can purchase to upgrade their standard life insurance policy. These riders are of various types and can upgrade your policy into coverage well suited to your needs.
You would be required to pay a small amount of premium to include life insurance riders in your plan. However, the premium is comparatively lower as they include little underwriting.
Here are some of the most common Veterans life insurance riders.
Check out our article to determine how much life insurance you need.
Waiver of Premium Rider
Waiver of premium rider is a policy clause that allows you to waive off the premium of your life insurance policy if you are severely injured, suffer from a disability, or are critically ill. However, to qualify for this Veterans’ life insurance rider, you must pass specific eligibility criteria.
The cost of this rider differs from person to person and policy to policy. In most cases, the premium is to be paid by the policyholder upfront. On average, the rider costs about 15%-25% of your basic life insurance monthly premiums.
Also, if you are disabled or injured, you will have to wait a certain amount of time. If a condition arises during this waiting period, you won’t get the benefits. However, you will receive a full refund of paid premium.
Applicants with pre-existing conditions can not apply for this rider. While the conditions and eligibility criteria differ from policy to policy, you must have a disability for a specific period (6 months in most cases) before you apply to qualify for a waiver of premium rider.
You must also submit notice from the Social Security Administration (SSA) and your doctor’s statement to confirm the medical condition. In addition to this, other requirements may vary, depending upon your policy. You can get in touch with your policy provider for additional details.
The rider provides benefits like redirection of personal funds towards healthcare, living expenses, and personal expenses. You will also receive continued coverage despite your condition.
Note – Waiver of a premium rider might not be available in all states, so make sure to check with your insurance provider.
Accelerated Death Benefit
An accelerated death benefit rider reimburses you for medical expenses when a terminal illness predicts your death within two years. This rider allows you to receive money for paying medical bills.
In the late 1980s, this rider was developed to help AIDS patients.
There is a waiting period, just like a premium rider waiver. If anything happens during this period, you/your family will not receive the benefits. However, you/your family will receive the full refund of paid premium.
Your plan might already include this benefit. If not, you can apply for this rider by proving that you suffer from a terminal illness.
Accidental Death Rider
With the accidental death rider, you can enhance your standard policy. It provides payment to the insured’s family in case they die accidentally. As a result of this rider, your traditional life insurance policy would pay additional benefits in the event of an accident.
This means that the insured’s family would receive the death benefit and the claim of accidental death rider. Typically, this rider ends once the insured reaches the age of 70.
Several insurance companies define “accidental death” as a result of an event that is accidental. This can include death caused by car crashes, choking, drowning, slips and machinery. There will be no coverage for death caused by fighting in a war or participating in illegal activities. Also, any accidents caused by hazardous adventure sports like scuba diving, race car driving, or bungee jumping will also not be covered.
Guaranteed Insurability Rider
Guaranteed insurability rider allows you to increase the coverage of a standard whole or term life insurance policy without having to appear for a medical examination.
This can be quite beneficial for policyholders, especially full life insurance holders, as it would allow them to increase their death benefits without applying for another policy. They would save money by not paying high premium rates.
In most cases, when applying for the policy, you would be required to submit blood and urine samples for medical examination. The company would also take your BMI measurements and check your blood pressure. However, in the case of this Veterans’ life insurance rider, you would not be subjected to any health checkups and would be able to increase your coverage amount over time.
In most cases, you can purchase this rider on an option date. Option dates are specific dates that might be linked directly to major life events like getting married. This would help you to plan for the future and increase your coverage when these significant events occur.
The cost of this rider depends upon several factors like age, gender, overall health, and life situations.
Family Income Benefit Rider
Family income benefit rider is a type of additional death benefit that allows the family member of the insured to receive payments equal to the monthly income of the insured in case the insured dies.
Unlike the death benefits provided by a standard life insurance policy that pays a lump sum amount in one go, this rider provides the payment in the form of monthly installments.
This rider is a great choice for policyholders who are the sole earners of the family. You must claim the benefit within a prescribed timeframe.
Child Term Rider
This specific period is usually mentioned in the papers.
Rather than opting for independent policies for your children, you can purchase additional coverage for them through a child term rider. This additional benefit provides extra coverage from $5,000 to $25,000 to your children until they reach maturity, i.e., 25 years in most cases. Child term rider can be converted into a permanent policy once the child reaches maturity.
You can purchase this additional benefit for biological children, stepchildren and legally adopted children.
However, you must note that this benefit is tied directly to your policy. If your policy expires, so will the benefit of your children.
Long-Term Care Rider
Long-term care rider allows you to access a portion of the death benefit provided by an ordinary life insurance policy to cover up the additional costs of long-term care.
This additional living benefit can be quite helpful for people who need everyday assistance or require supervision while carrying out daily activities. To qualify for this add-on, you must submit a medical statement stating that you require help to carry out at least two everyday activities due to cognitive impairment like dementia or Alzheimer’s.
Generally speaking, most people don’t opt for this life insurance rider because it can be expensive or unaware of it. But, with the high cost of care, it is recommended that you choose this policy, especially if you are suffering from a chronic ailment.
A waiting period applies to this policy, similar to other riders, such as accelerated death benefit and premium waiver. In this case, the waiting period is usually 90 days. You will, however, receive the full refund for a paid premium during this period.
Return of Premium Rider
Return of premium rider pays you the refund of the total premium paid throughout the life of the term life insurance policy if you outlive the stated term. In simpler words, if you have term life insurance and don’t die during the policy, you will receive a refund of all the premium paid by you through this rider.
While this can be a little expensive, it is quite worth it. Also, it can be a considerate option if your policy is about to expire, or you simply wish to discontinue it.
Term Conversion Rider
Typically, term life insurance lasts for 10, 20, or 30 years. Once the policy expires, you must wait for another year to apply for the new policy. Also, you would also be required to appear for a medical examination to qualify for this policy.
However, you can convert your expiring term life insurance into whole life insurance without giving any medical examinations with a term conversion rider.
How Can Life Insurance Riders Help Veterans?
Veterans life insurance riders can not only offer financial protection to you and your family, but it also keeps your interest covered in case the unfortunate happens.
These riders help Veterans to mold a standard life insurance policy into coverage that meets their special needs. However, before you go on and make a choice, make sure you check in with your insurance policy provider so that you are aware of all the benefits.
What Riders Are Available?
Frankly speaking, the riders available to you depend on your policy. Before applying for a policy, you are advised to check with your insurance provider.
Are Veterans Life Insurance Riders Worth It?
While Veteran’s life insurance riders might seem like an extra expense when you opt for them, they are worth every penny. Not only do they mold your policy in the way you like, but they also upgrade your policy and increase your coverage to ensure that your interests are covered, and you can live a long, secure life.